Calle Argentina 9, S&J H purchased a two bedroom apartment in 2004 at the top of the market for €279,000 with the assistance of a €110,000 La Caixa mortgage. They sold the property in 2015.
(Go here to read more of this and other experiences.)Experiences
In 2006 Mark D (Ayamonte, Huelva, Spain) took out a Sabadel / Solbank mortgage which was linked to the Euribor.
The terms were that the rate would be set at 0.7% above the Euribor 12 month rate BUT - the collar clause turns out to state that his mortgage rate could not drop below 3.75%.
At the time 0.7% over Euribor seemed a good deal, as mortgage interest rates were running at 5.5%.
For the passt 9 years though (2008 to now) Mark has been paying that minimum of 3.75% (rather than .7 over Euribor = 1.2%).
Suddenly in April 2016 Solbank rang Mark to say thatin the near future his mortgage agreement would be scrapped, and 'a new deal' put in place (with no information - which if Mark would agree to would involve fixed mortgage through until 2026 - being the end of his 20 years mortgage - at 3.25%.
Mark D thought his Christmases had all come at once and accepted.
He was then emailed 2 documents, one saying that he would lose any right to make a claim by accepting the fixed mortgage!
You will not need us to tell you that Solbank SHOULD have been charging around 1.20% - and that this new 3.25% 'deal' would give them a 2.05% 'bonus'per year - over 3,000€ per year (thus far for 9 years) on a 150,000€ mortgage.
Not a bad days work when multiplied by a few hundred thousand customers.
Calle Argentina 9, S&J H purchased a two bedroom apartment in 2004 at the top of the market for €279,000 with the assistance of a €110,000 La Caixa mortgage. They sold the property in 2015.
They had an acute sense of having been charged for everything. Their mortgage payments did not alter throughout and so we anticipate they will have been overpaying around €150 for six year. We anticipate that the analysis of their mortgage will reveal a number of items that the bank should have paid for but were passed on to the borrower.
