The famous ground clause has been responsible for thousands of Spaniards paying much more for their mortgage. Thousands of complaints and hundreds of demonstrations later, the popular clamor has achieved that this abusive clause has been almost reduced to zero.
Minimum interest that prevents the mortgaged person from paying less
The so-called “land” mortgage, a minimum interest that prevents the mortgaged person from paying less if the Euribor falls, is a clause that the banks “sneaked in” between the 60 pages of the mortgage contract during the “bubble” years, without No one, not even the notary, will explain it to the mortgaged ones clearly.
But with the outbreak of the crisis, the mortgaged, with more and more problems to reach the end of the month, took the reins of their personal finances, informed about their mortgages and discovered that they paid more than they should. And it is here where a long string of complaints began that you have not stopped producing, and that have had at least five excellent consequences:
There are four banks that are prohibited from applying “soil”
In September 2010, the Supreme Court (TS) condemned BBVA, Abanca and Cajamar not to re-market mortgages with “land”, and to withdraw this clause from all their mortgages by recalculating the fees of all clients who requested it (although not Retroactive). Likewise, it condemned CajaSur to return the amount charged to its affected parties, in cases where the land is between 3% and 4%.
The judges, very aware . The majority of complaints that were filed thereafter by individuals have been ruled in favor of the affected party because they considered that no one explained the consequences of this section of the contract.
Banks throw in the towel . After the reactions of the TS and the overwhelming majority of judges, the banks withdraw the ground clause from their offers. At present, no Spanish bank applies land in newly created mortgages.
Those affected begin to recover the money
Another historical ruling of the TS was the one that failed in March 2015, which forced the entities to return the extra charge since May 9, 2013 due to this abusive clause, provided that the mortgaged party demonstrated a lack of pre-contractual information.
However, it should be said that the Government, in anticipation of this ruling, has reached an agreement with the bank for which, although it is true that all “soils” will be annulled, it is still unknown if those affected will recover their money. At this point, the analysts are divided at the time of the forecasts: those who believe that the banks will be the biggest beneficiaries of the new regulations, since they would save the return of billions of euros, and those that they take for granted that the sentence will have retroactive character, reason why, they say, the sector would already be preparing the resource to the imminent judicial decision.
Anyway, what is clear is that, with what has been agreed so far, the mortgaged will ensure that the famous “land” is never applied to them and that their mortgage quota be recalculated with the variable interest stated in their contract.