Overpaid instalments
100% reclaimable
You recover the difference between what you paid each month in yen/francs converted to euros and what you would have paid had the mortgage always been in euros. It is usually the largest item.
If you signed a mortgage in Japanese yen, Swiss francs or pounds sterling and the instalment has spiralled because of the exchange rate, the Spanish Supreme Court and the CJEU allow you to cancel the multi-currency clause for lack of transparency. The mortgage is recalculated as if it had always been in euros and you recover the difference.
Una hipoteca multidivisa is a mortgage loan in which the principal and instalments are not in euros but in otra divisa extranjera — habitualmente yen japonés, franco suizo or, less commonly, pounds sterling. They were marketed heavily between 2005 and 2010 as an "attractive" product because interest rates in those currencies were very low.
The problem is that the client is exposed to riesgo de tipo de cambio. If the euro weakens against the yen or the Swiss franc, the debt in euros goes up — even while paying every instalment, the outstanding capital can end up higher than the amount originally signed.
The Spanish Supreme Court (STS 608/2017) and the CJEU (case C-186/16, Banco Romania) have confirmed that the multi-currency clause se somete al control de transparencia. If the bank did not give clear, comprehensible and complete information on the exchange-rate risk before signing, the clause is void and the mortgage is recalculated as if it had always been in euros.
Cuando se declara la nulidad por falta de transparencia, no solo se recalcula la hipoteca a euros — se devuelve la diferencia pagada de más, se recalcula el capital pendiente y baja la cuota mensual.
You recover the difference between what you paid each month in yen/francs converted to euros and what you would have paid had the mortgage always been in euros. It is usually the largest item.
The outstanding capital is recalculated as if it had always been in euros with Euribor. In most cases the debt drops by 20-50%, removing the "hole" caused by the exchange rate.
For the rest of the life of the loan, the instalment is calculated at Euribor + agreed spread. No exchange-rate risk. No surprises. You regain the financial predictability you should never have lost.
Currency exchange fees charged on every instalment, fees for changing the reference currency, conversion costs... all reclaimable once the multi-currency clause is void.
When we sue and win — usual outcome under current doctrine — the costs of the proceedings are borne by the bank. Costs awards in multi-currency cases are practically automatic.
On all amounts claimed, we accrue statutory interest from the date of each payment. It increases the final amount by 15-25%.
Ask us for a free case review and we will get back to you in less than 24 hours.
Enter the basics of your multi-currency mortgage. We estimate a realistic impact of the exchange rate and the reclaimable amount.
Leave us your details and a lawyer from the firm will personally review your deed and the pre-contract information. In less than 24 hours you will receive a report with the legal viability of the claim, the estimated amount and next steps.
Multi-currency mortgage doctrine has been settled since 2015 and reinforced by the CJEU. These are the three key references we apply to every case.
The Plenary of the Spanish Supreme Court applies the transparency test to the multi-currency clause. If the bank did not properly inform about the exchange-rate risk, the clause is void.
The CJEU establishes that multi-currency clauses are subject to fairness and transparency review. The burden of proving adequate information falls on the bank. Doctrina aplicable a todas las hipotecas multidivisa de la UE.
The Supreme Court reaffirms its doctrine after the European ruling: pre-contract information must be clear and understandable about the effects of the exchange rate throughout the life of the loan.