If you are one of the many people affected by floor clause mortgages, you should know what you are entitled to claim, and how much. Below, we offer you everything you need to calculate the amount you are entitled to due to the Spanish Floor Clause. We’ll explain it to you with a practical example so that you can understand it better. We’ll also tell you what else you can claim.
Thanks to this post, all you’ll have to worry about is how you’ll spend the money you are going to get back.
If you want to calculate the floor clause of your mortgage to find out how much the bank owes you, you’ll need to provide the following information:
- Date: month and year in which the mortgage was signed.
- Amount: amount lent by the Bank.
- Deadlines: Time agreed with the bank to pay the mortgage.
- Differential: fixed part that must be added to the reference index. A loan from EURIBOR1 means that you’ll have to pay EURIBOR interest and 1% extra
- Floor: the minimum percentage set out to pay in your floor clause.
What are you going to be able to claim?
The banks would like you to believe that you can only claim the difference in the paid fee. In other words, the difference between the fee paid with the Floor Clause and the fee paid at the correct rate. However, this is not the case, since you can also claim the legal interest rate of money and the difference of loan capital.
Now, here’s an example of each claimable element so that you understand it better:
To start off, we’ll imagine that these are the characteristics of our mortgage loan:
- Amount: 350,000€
- Date of grant: 2008
- Fee to pay with floor: 3.5%
- Amortization period: 25 years
Difference of paid fee
In this case, the monthly fee to pay would be €1166,66, plus interests. Our Floor is 3.5%, which translates to € 40,83 of interests payable per month, €490 of interests per year and €4410 in 9 years. However, if EURIBOR was at approximately 1.5% over these years, we should have paid € 17.49 of interests per month, € 210 per year and €1890 during the 9 years that we have been paying the mortgage. Subtract the paid fee with and without the Floor Clause and the bank would have to return a total of €2520.
Legal interest rate of money
The bank has retained €2520 for 9 years, so the legal interest rate of money must be applied. If we calculate that interest at 3%, they would have to pay you an extra of € 75.6.
Difference of the loan capital
The loan with Floor Clause (3.5%) is a total of €362.250 payable over 25 years. Since the fee payable per month with Floor is €1207,49, over 9 years you have paid €130.410, so, if we make the difference between the loan with the Floor and what we paid in 9 years, we still have to pay € 231.840.
However, the loan without the Floor Clause (1.5%) is €355.250, also to pay over 25 years. The fee per month without Floor would in this case be €1184,15, so in 9 years you will have paid €127.888, and if we make the difference between loan without Floor and what’s been paid for 9 years, we still have to pay € 227.362.
Ultimately, subtracting €227.362 and €231.840 leaves us with a payment of €4478 less paying the loan with Floor Clause for 9 years, so that’s the amount you are entitled to claim.
Adding everything up (2520 + 75.6 + 4478), the amount that the bank should give back in this case is €7073,6.
Calculations: How much can I claim?
You can now find out how much you have to get back through our Floor Clause calculator. It will take you less than 99 seconds. Without any cost or obligation.
What else can I claim?
In addition to the floor clause, it is very likely that you can also claim the costs of setting up your mortgage, since most of the costs should have taken on by the bank and not by you.
We remind you that you can always consult our Help section to solve all your doubts. You can also make your claim with us and let us handle the whole process. We will analyse your mortgage and claim on all the unfair terms it contains. This way, we make sure you get back the maximum amount you are entitled to.