June 1, 2019 news Socialcommunity 

The bank offers solutions to those affected by the IRPH while waiting for Europe

The bank offers solutions to those affected by the IRPH while waiting for Europe


Among the solutions that are proposed is to change the mortgage to another bank; if so, it could propose a novation with better conditions in order to avoid the exit of clients. 


  • Social community June 1- The foreseeable delay of the European ruling on mortgages linked to the IRPH (Mortgage Loan Reference Index) has proliferated the extrajudicial solutions offered by the bank, which this summer is playing the disbursement of up to 44,000 million for this clause.


Initially scheduled for June 24, the general counsel of the European Union has postponed its conclusions until September 10, three months of margin in which entities offer their clients agreements that allow them to recover part of their money in exchange of not claiming in the future.

According to experts consulted by Efe, before accepting any possible proposal as valid, the mortgagee must know, first of all, what Luxembourg should pronounce on.

In particular, the Court of Justice of the European Union (CJEU) will have to clarify if the IRPH is null or illegal, if it has to be subject to the same transparency controls of other products and if, if it is contrary to the banks, it would fit the possibility of granting retroactivity.

In this context we would have to see, in addition, what other index would be chosen to reference the mortgages of the injured, whose damage would be around 20,000 euros for every 200,000 euros of mortgage, according to the consumer association Asufín.

Aware of this scheme, it is up to the client to assess the cost-opportunity of each of the proposals submitted by his entity.

In the hypothetical case that the CJEU declares the index null, the bank would be obliged to return to the client all the interest paid throughout the life of the mortgage.

As of that moment, no other interest would be applied except that it is reflected in the deeds, which could only be the differential or a substitute interest.

The platform Claims for me explains that "there is a theoretical scenario that has penetrated between some sectors where the IRPH could be moderated and that, instead of being considered null, is replaced, for example, by the euribor".
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Although the recent history of mortgage disputes in Europe is favorable to the consumer, lawyers recommend that the injured parties consider what would happen if the court endorsed the IRPH.

Among the solutions that are proposed is to change the mortgage to another bank; if so, it could propose a novation with better conditions in order to avoid the exit of clients.

However, they point out that, being so close to the sentence, the majority of those affected choose to remain in their entity because, if they obtain a favorable ruling, "if you sign with another, the interest that still has to be paid from the new mortgage, yes that they would have to pay for it ».

Although the decision will be known, possibly in the final stretch of the year, banks and mortgaged carefully follow the developments since last February, when the CJEU held the preliminary hearing for the triple question raised by a Spanish judge on the validity of the index .

According to the data handled by Goldman Sachs, the nullity of the IRPH could bring to the sector a cost of between 7,000 and 44,000 million.

In absolute terms, CaixaBank would be the most exposed, which would cost between 1,775 and 11,250 million.

On the other hand, Santander and BBVA would have to return both between 1,014 and 6,428 million; Bankia, between 406 and 2,571 million; Sabadell, between 355 and 2,250 million, and Unicaja Banco, between 51 and 321 million, following the investment bank's estimates.

Unlike other products such as multi-currency mortgages, the sale of these mortgages did not depend as much on the profile as on the autonomous community, being Andalusia, the Basque Country and Catalonia those with a higher density of these loans, signed with entities that promoted the IRPH to the be much more controllable than the Euribor.

The publication of the conclusions of the attorney general is the first turning point for the community magistrates, who would take two or three months to issue their decision, on which the consolidation of the doctrine on the index in Spain depends.
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