Floor clauses were at the center of one of the largest mass litigation cases in recent Spanish banking history, with hundreds of thousands of affected borrowers claiming refunds. Although the most intense phase of the phenomenon is behind us, there are still people who don't know whether their mortgage had one or how to check.
What a floor clause was
It was a clause included in many variable-rate mortgages tied to the Euribor, which set a minimum interest rate that would apply regardless of how far the Euribor fell. Even though the contract was formally still "variable," in practice, if the Euribor dropped below that agreed floor, the borrower kept paying the installment calculated with the minimum rate, without benefiting from the actual drop in the reference index.
Why they were declared void in many cases
Spanish courts, including the Supreme Court, declared numerous floor clauses void for lack of transparency: it was found that, in many cases, the bank had not adequately informed the customer of the existence and practical consequences of this clause at the time of signing, presenting it unclearly within a long, technical contract, which prevented the consumer from truly understanding the real risk they were taking on (a "variable" mortgage that, in practice, behaved like a fixed-rate one whenever the Euribor was low).
How to check if your mortgage had a floor clause
Review your mortgage deed (or loan contract) looking for clauses mentioning a "minimum applicable interest rate" or a "limit on interest rate variation," usually found among the financial clauses of the contract. You can also compare your payment history with what it should have been by strictly applying the Euribor plus your agreed spread, with no floor: if the Euribor fell during some period but your installment didn't reflect it proportionally, that's a sign a floor was being applied.
The mandatory out-of-court claims procedure
Given the massive volume of claims, a mandatory out-of-court procedure was established as a prerequisite to going to court: the consumer must first request a refund of the amounts overpaid directly from the bank, and the bank has a set period to respond with a refund proposal before the affected party can go straight to the courts.
What can be recovered
If the clause's nullity is recognized (whether through an agreement with the bank or through the courts), the affected party is entitled to recover everything overpaid as a result of applying that floor from the very start of the loan, not just from some later date, plus the corresponding interest under the applicable judicial criteria.
If you're not sure, consult a professional
Determining precisely whether your specific clause is void for lack of transparency, and calculating the exact amount to claim, requires reviewing the specific documentation of your contract. A lawyer specializing in banking law can confirm your particular situation.
Compare your current installment with what it would be without a floor
Our mortgage calculator lets you simulate the installment corresponding to different interest rates, useful as a reference to compare against what you've actually paid.