IRPH Mortgage Holders Waiting for Ruling from the European Court of Justice

Update September 11. The Advocate General has pronounced for the consumer. We now wait for the decision of the ECJ.

The IRPH Spanish banks mortgage rate interest is a Euribor alternative, used for pricing floating mortgage interest. Considering that this system did not allow mortgage holders to benefit from lower interest rates, the IRPH was discarded in 2013. 

Numerous Spanish homeowners who took out this type of mortgage were disappointed when the Spanish Supreme Court ruled in favour of the banks are now waiting for the European court of justice to make a decision on the legality of this interest rate charge. Those affected are hoping that with a favourable ruling from the European Court of Justice, some Spanish lawyers will litigate on their behalf on a contingency fee basis. 

There have been recent  publications about the Advocate General for the European Commission anticipated decision on the rate charges on September 10.  Whatever his decision it will be non-binding and the matter will have to go before the ECJ. CAB will wait for that result and publish the outcome. 

Members who may be affected by the IRPH and wish to have further updates can contact us using the “contact us” page of our website.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.