Multi Currency Mortgages-A legal Solution

This article was provided to us by a law firm with expertise in banking products.

“We have been observing frequent cases of homeowners who signed multi-currency mortgages , in which the quotas and the capital to be amortised are determined by a currency (such as the yen or the Swiss franc ), without knowing the real risks of the product, which finally has caused them significant damage. The lack of information on the part of the bank to the client at the moment of the signature concludes that the client could have been prejudiced if they did not know the risks of the contracting of multi-currency mortgages .

In a judgement of June 30, 2015, the Supreme Court considered these mortgages a complex financial instrument since it was a derivative. Therefore, the entities that sold them had to comply with the Securities Market Law and the MiFid Regulation, That is, provide enhanced information when the borrower was an individual and not a business. It is stated that multi-currency mortgages consist of a product aimed at professionals in finance, who can assess the risks of betting in this market .

If you are affected by the problem of multi-currency mortgages, you can obtain the nullity of the clauses that establish the interest rate determination according to a currency, as well as the banks having the obligation to repay the amounts overcharged

For further information with no obligations, you may contact the lawyers, authors of this article who have a department on banking law headed by a top lawyer who has assisted many clients in the field of bank products” .

Contact the lawyer by sending an email to : lawyer@citizensadvice.org.es

There are still many mortgage holders who are also affected by the abusive floor clause, who have not come forward to make their claims. Further information by entering into the link below.

Clausula Suelo

Information on this clause and other bank products or claims can be found by using the keywords “clausula Suelo” in our search box.

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.