Multi-currency mortgages: Steps to follow to claim
What is a multi-currency mortgage?
A multi-currency mortgage is a complex financial instrument that constitutes another of the ways to obtain a bank credit. Its advantage is to benefit from the low interest rates that exist in a certain country in relation to others. At the same time, it is subject to the following risks: variation of the interest rate and currency fluctuation.
The problem that arose in relation to this mortgage was the lack of information offered by the banking entities when proposing this option, hiding the risk that it supposes. Being a financial instrument and not just a mere mortgage loan, banks should have taken into account the circumstances and knowledge of the mortgaged at the time of offering to contract this type of mortgage.
Documentation needed to claim:
Deed of mortgage formalization
Documents that the bank gave us before hiring the mortgage
Paid receipts or, failing them, movements that the mortgage has suffered
Steps to follow to claim:
First of all, it is recommended that you contact the financial institution to express the situation in which you are and request the change of the mortgage in Euros. Likewise, it has to be requested that the Euribor be taken as a reference, in addition to the return of the amounts paid over the time which the mortgage was calculated according to another currency.
At this point, it may happen that you do not receive any response from the bank or that the bank offers you an agreement. In both cases it is advisable to contact a specialized lawyer trained to guide you with regard to the different options available. It is very important to review the solution offered by the bank with a lawyer, as this will advise us in case the agreement offered by the bank is insufficient and is advisable to go to court.
If no answer is received, the corresponding legal actions must be initiated in order to obtain a judgment that condemns the bank to pay the amounts unduly charged to the client.
We hope that this information, especially relevant at present, has been helpful and if you need any clarification about it, do not hesitate to contact us.