Tuesday, 26 October 2010

Property Point Marbella - Mortgage rates in Spain Court ruling could save Spanish homeowners millions

Paul O'Mahoney of Property Point Marbella reports on the latest news.  For more information, please visit Property Point Marbella's website at www.propertypointmarbella.com.

Lowest Spanish mortgage rates from 1.9%. The lowest interest rate available for a mortgage in Spain is currently 1.9% and is applicable to loans at 60%

In what could be a precedent-setting ruling, a Sevilla court has ordered several banks to eliminate the clauses in variable-rate loans that have prevented thousands of loan holders from benefitting from rock-bottom interest rates.

The ‘cláusula de suelo', or minimum-interest clause, was part of the fine print on many loans issued in recent years and has meant that while the Euribor interest rate index - the most widely-used in Spain to set mortgage loan rates - dipped to historic lows of under 1.3 per cent, loan holders kept paying at a much higher ‘minimum rate'.

The Sevilla court ruling applies to BBVA, Caixa Galicia and Cajamar in a case brought against them by banking consumer watchdog Ausbanc, which argued that the minimum-interest clauses were abusive.

"This transcendental ruling will benefit thousands of people in Spain who have a mortgage loan with these banks," said Ausbanc, calling the court decision a "major step" toward the complete elimination of minimum-interest clauses in mortgage loans.

The group said that throughout Spain the cláusula de suelo - used by many banks besides those named in the case - may be affecting millions of loan holders, and the ruling opens the door to them demanding their money back.

Source: barcelonareporter.com

For more information about the latest property listings in Marbella, please visit Property Point Marbella's website at www.propertypointmarbella.com.

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