"Created in 1988 BBS Abogados Asociados Asesores Legales y Tributarios specializes in all the fields that make up the law of the company."
Growing Peace of Mind Mortgage Lawyers
A doubtful tranquility | An abusive product | A peace of mind for the Banking entity, not for the client.
There are many clients who come to our office who pay a very high mortgage payment and do not know why. The causes can be many: that they have a floor clause, that their mortgage is referenced to the IRPH, or that their mortgage is of increasing installment. At BBS Abogados, we are experts in Tranquility or Increasing Mortgage.
What is a Tranquility or Increasing Mortgage?
A mortgage with an increasing installment is one that is amortized with installments that increase by a percentage over the last one paid, following a geometric progression. Consequently, in each period more is paid than in the previous one.
Are there other amortization systems? Which one benefits me the most?
Yes. There is the French amortization system which, in fact, is the most common.
The French amortization or constant installment system assumes that the installments do not change as long as the interest rate does not change. Also, as time goes by, the amount of interest paid decreases.
Undoubtedly, the French amortization system is the most beneficial, since the increasing installment is absolutely harmful for the consumer.
What is the trap of the Tranquility Mortgage?
The system with increasing quota is completely misleading and harmful, since at the beginning the bank charges you quite low fees, but as time goes by the fees rise disproportionately. Therefore, from BBS Abogados we do not recommend hiring a mortgage with an increasing installment-
How do I know if I have an increasing mortgage?
Normally the loan repayment system is located in the second clause of the loan deed. However, it is difficult to detect when the amortization system is of increasing installment because the paragraph goes completely unnoticed. If a paragraph appears that indicates that the monthly payment is to be multiplied by a numerical expression, you probably have a mortgage with an increasing payment.
What banks have marketed mortgages with increasing installments?
The banks that have marketed the most mortgages of this type are: Abanca (formerly Caja Galicia), Bankia and Banco Santander (formerly Banesto), which calls it “Hipoteca Tranquility.”
What do I do if I have a mortgage with an increasing installment?
From BBS Abogados, experts in Tranquility and Increasing Mortgage, we recommend that you file a legal claim. In fact, there are already many judgments issued in Spain canceling this type of mortgages and condemning the bank to recalculate the amount of the installments without applying the corrective effect of the increasing installment, as well as to return the resulting difference.
If you suspect that you may have an increasing mortgage, do not hesitate to contact us and we will help you claim and get your money back. You can call 93 760 53 77 or write to us at bbsabogados@bbsabogados.com.
