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Court invalidates more mortgage clauses but for different reasons

  • A Marbella court has recently found in favour of two people who took out mortgages based on the Índice de Referencia de Préstamos Hipotecarios

A wave of other refund claims to banks could be on the horizon, and this time it has nothing to do with the so-called 'floor clause'.

A Marbella court has recently found in favour of two people who took out mortgages based not on the standard euribor interest rate, but on a more complicated financial index called the IRPH (Índice de Referencia de Préstamos Hipotecarios), which can be a higher rate than the euribor.

In the cases, brought against Banco Mare Nostrum and Caixabank, the complainants said that the distinct types of rate were never properly explained.

Lawyers for both banks argued that the type of rate wasn't explained to the customer as they didn't ask. However, the courts found that it was the banks' duty to spell out the differences. A staff member who arranged one of the loans for their customer was called as a witness and was unable to explain to the judge how the rate was calculated.