What is a floor clause?

The definition of the floor clauses are the contractual stipulations that are inserted in the contracts of p├ęstamos mortgages for the purpose of limiting the drop in interest rates when they are variable. They have a maximum established in the contract that is usually above 3%.

The floor clauses are intended for the borrowing consumer to be able to enjoy a reduction in the variable rate interest of their loan when the reference rate set in their contract is reduced below the minimum limit imposed by the floor clause. By means of these types of clauses, the financial institution establishes a downward limit and a minimum benefit is guaranteed since the monthly fee paid by the client will never be decreased while the clause remains in force.

When is a floor clause considered abusive?

A judgment of the Supreme Court in 2013 considered the floor clauses abusive due to a lack of transparency, being a General Contracting Condition drawn up unilaterally by the bank and for causing unexpected changes in the price of the contract that the client is also unaware that can be made .

From there, the floor clauses signed with a lack of information and that were presented as a contraprestación mandatory to the ceiling clause and with the appearance of positively affecting the reduction of the price of money.

The lack of transparency at the time of reporting on the characteristics and the implication of the floor clause in the price of the Mortgages means that most of those contracted before this 2013 law are considered abusive floor clauses.

How do I know if I am affected by the floor clause?

The simplest option is to ask the bank if the mortgage loan has a floor clause. There is the possibility that they lie to us, that is why we must carefully review the deed of the mortgage loan itself. In this class of contracts, the term floor clause appears as limits to variability, mortgage tunnel, downward limitations of the interest rate, limits to the application of the variable interest rate, interest range, limitation of the interest rate or the agreed interest rate may not be higher than 'x' nor lower than 'y'

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