The Asociación de Usuarios de Banco, Cajas y Seguros (Banks and Insurance Users Association) has denounced in court a total of 19 banks, including the Cajasol and Cajamar, of unfair practices by limiting mortgage rate decreases.
Most nortgage rates are based on the Euribor, which has been steadily falling in value and on Friday stood at 1.227%. Many borrowers, however, have found they are stuck with a minimum rate of 2%, 3% or even 4.5% despite the fall in the Euribor rate.
Experts point out that anyone trying to cancel this clause in their mortgage contract is likely to be asked for a substantial sum of money by the lender, from €4,000 to €18,000, and the best advice is to take the matter to court via the denuncia system.