The floor clause is nothing but a stipulation that the bank includes in the mortgage document at the time of its signature, and must be accepted by both parties. The purpose of this section is to set the minimum interest the customer should pay.
A floor clause is some sort of minimum percentage that a bank will attach to mortgages with some kind of interest rate, so there is always a minimum interest rate, no matter what the market rate is less or more.
Mortgages with variable interest rates are only affected by these floor clauses and so mortgages with a fixed rate have nothing to do with floor clauses. This is because a fixed monthly interest is paid in case of a fixed rate situation.
These are many things that you have to know about the floor clause and some of the most crucial things are listed down:
- Who can claim the floor clause? It can be claimed by all consumers who have been affected at present or in the past by the floor clause.
- Where is the floor clause? – You will be able to find the floor clause in your mortgage deeds and this document would be signed at the same of purchasing your property.
- Where are mortgage deeds? – When someone signed the mortgage deed prior to the notary, the bank used to register it to the land registry. Once the deed is registered, it is received by the bank and they asked the client or their lawyer to collect it.
- Can a copy of the mortgage deed be obtained? – And the answer to this question is definitely yes and one can get it from the bank or also from the notary, the place were deeds signed.
- What details should be verified? – You can get a list of payments you made from signing the mortgage from the bank’s website or the mortgage branch. If the interest rate falls and your mortgage does not decrease, you may have a mortgage floor clause.
- How to make a complaint to the bank? – A copy of the mortgage bond with the last bill must be submitted in the form of a form to your bank and ensures payment of a monthly mortgage. Moreover, a record of overpaid money must be submitted. You have to start a court claim, only if the mortgage floor clause is not canceled by a bank.
Claiming a floor clause at a court is good but you can do it easily with a lawyer. When you have decided to reclamar cláusula suelo, the first thing that you have to do is hiring a reliable lawyer who can help you in winning the case.