Floor clause (cláusula suelo): what it is and current status
Banks sold variable-rate mortgages that only varied in one direction: up. The floor clause was one of Spain's biggest banking frauds. The bulk of the problem has been resolved, but it still affects older mortgages.
What it is
A floor clause (cláusula suelo) sets a minimum interest rate on a variable-rate mortgage. In theory, your mortgage tracks the euribor plus a spread. If the euribor drops significantly, your payment should fall proportionally. But with a floor clause, the interest rate can never go below a percentage fixed by the bank — typically between 3% and 4%.
The deception: banks buried these clauses in the fine print without explaining them. When the euribor plummeted from 2009 onward and eventually went negative, mortgage holders with floor clauses got zero benefit from those drops, while their neighbours without the clause saw their payments fall dramatically. The market risk was for the client. The floor was for the bank.
What happened with claims
The EU Court of Justice ruled in 2016 that floor clauses imposed without adequate transparency were abusive, and that banks had to refund everything overcharged from the beginning. The Spanish government created an out-of-court mechanism in 2017 to channel claims without overwhelming the courts.
Thousands of people claimed and received refunds. In the forums, experiences vary widely: users who recovered thousands of euros, and others who had to go to court because the bank rejected the out-of-court claim. The banks lost in law, but many bet that the client would give up before reaching a judge.
One community member described their approach: "I got rid of the floor clause by switching banks myself. No court ruling, nothing. I told them either remove it or I leave, and I left." Others used specialised lawyers or services like Legalitas.
Does it still exist today?
Mortgages signed after the Ley de Contratos de Crédito Inmobiliario (Mortgage Credit Contracts Act) of 2019 cannot include floor clauses. Banks are required to be far more transparent, and the interest rate you sign is the one that applies, with no hidden minimums.
However, mortgages signed before 2019 that have never been claimed against or modified may still have an active floor clause. If you have a variable-rate mortgage signed before roughly 2013, it is worth checking your deed (escritura).
How to check if your mortgage has one
Look in your mortgage deed (escritura de préstamo hipotecario) for any mention of "tipo mínimo," "suelo," "límite inferior del tipo de interés," or similar language. It is usually in the section that defines how the variable interest rate is calculated. If you cannot parse the legal Spanish, take it to a lawyer or a consumer association (asociación de consumidores).
What to do if you find one
If you discover your mortgage has a floor clause and you never claimed, you still can. Your options:
- Negotiate directly with your bank: ask for removal of the clause. Some banks agree to avoid litigation.
- Formal out-of-court claim (reclamación extrajudicial): file a complaint with the bank's customer service department (servicio de atención al cliente).
- Lawsuit: if the bank does not respond or rejects your claim, a specialised lawyer can take the case. Many work on a success-fee basis (only charge if they win).
- Subrógate to another bank: switch your mortgage to a different lender that does not include the clause, as the borrower mentioned above did.
The bottom line
The floor clause is a past-tense problem for new mortgages, but it remains live for older loans that were never challenged. If your mortgage is variable-rate and pre-2013, check the deed. If you find a floor, claim it back — the case law is firmly on your side.