Some 40 banks are involved, including Caixabank, Barclays, Bankia, and Banco Santander. Caixabank and Bankia abolished cláusula suelo mortgages last year.

You may also be interested in HOW TO CLAIM BACK YOUR MORTGAGE COSTS IN TENERIFE.

What is the Clausula Suelo?

The Clausula Suelo was introduced to protect banks against negative interest rates and guaranteed a minumum mortgage repayment to the banks. This means mortgage holders could not benefit from the low/negative interest rates. It is estimated that some 4 million mortgages were sold between 1997 - 2007 who were most affected when the property bubble burst.

In May 2013, Spain’s supreme court ruled that the mortgages of this type provided by BBVA, Cajamar and NCG were “abusive”. A ruling handed down by judge Carmen González goes further, “condemning the banks in question to pay back the quantities improperly charged under clauses declared null by the supreme court”. - The Guardian

How to claim your payout

Firstly, unless you are 100% sure of the process you need to take, do not approach the bank as they have been known to hand you a piece of paper to sign which they state is simply an authorisation form to give you the mortgage details. It may or may not be the case - you may be signing a contract which prevents you from being able to claim the payout!

Here at Tenerife International Business Centre SL, we have an in house lawyer who deals with claims. If you would like to come and speak to a professional about claiming your Clausula Suelo payout, get in touch with us to arrange a meeting so we can firstly go through your paperwork and check if you are owed anything from the bank.

Our fee for preparing and submitting the application is 600 Euros +IGIC. We will not be entitled to any percentage of what you claim back. This fee does not include any legal fees which MAY be required.

Prevention is better than the Cure

TIBC SL are exclusive agents for BBVA and recommend them and only them to bank with in Tenerife. Why? They may not offer the best introductory rates and offers but from years of experience, they have proven to offer the best customer service. BBVA is one of the banks in the list who applied these clauses to their mortgages but in 2013 were open to their customers and immediately made allowances to refund their customers.

If you're thinking about switching bank accounts or looking to open a new bank account, get in touch with us and we'll advise you on the best account/mortgage product for you, help set up your bank account and be your first port of call for any banking matters should you wish us to be! Contact Tenerife International Business Centre SL for more information or to arrange a FREE Document Health Check.

You may also be interested in HOW TO CLAIM BACK YOUR MORTGAGE COSTS IN TENERIFE.