Did you take out a Swiss Franc mortgage for a property purchased in Spain prior to 2015?
If you did we have good news for you. There’s a pretty strong chance that you have the ability to make a legal claim against the bank that sold you the mortgage.
If you would like to examine your options, send an email to info@diarmaidcondon.com with your mortgage documents and we will assess them for you, free of charge.
Why is it possible to make a Swiss Franc Mortgage Reclaim in Spain?
On January 15, 2015, the Swiss National Bank (SNB) terminated its minimum exchange rate policy (often referred to as ‘pegging’) with the euro. Prior to this, from the introduction of the euro in 2002, the Swiss franc had been pegged to the euro at a rate of one euro to 1.2 Swiss francs. This was, however, a voluntary arrangement and the Swiss had the ability to change it whenever required.
The change resulted in a sharp, unanticipated and permanent appreciation of the Swiss franc by more than 11% against the euro overnight (see graphic below). It led to a number of foreign exchange companies and financial institutions becoming immediately insolvent.
It also meant that clients of banks that had sold Swiss franc mortgages for properties purchased in euro, experienced a rapid, and in many cases untenable, increase in repayments.
Is it illegal to sell Swiss franc mortgages in Spain?
Sales of Swiss franc mortgages are not, in themselves, illegal. The problem lies with the information (or more accurately, lack of information) given to clients when these mortgages are sold. These were predominantly promoted on the basis that Swiss franc mortgage rates were much lower than those of their euro based counterparts at the time of the sale. Most were transacted prior to the financial crisis of 2008.
In many cases, the mortgage sales institution supplied insufficient information to the client about the potential disparity in rates should the Swiss change their exchange rate policy.
For this reason, many holders of these policies have access to redress through the courts. It is not a difficult process. If you have your documentation, we can tell whether the case will be successful or not. With the correct mortgage documents, cases are successful.
Can I claim for a Swiss franc mortgage sold outside of Spain?
Yes. cases have also been won in France, Poland and Cyprus (and probably other countries about which we’re not aware). We specifically deal with mortgages originating in Spain but, if your case involves a different country, get in touch and I’ll do my best to guide you to an appropriate professional to help with your case.
Is it possible to initiate a Class Action suit?
Yes. In fact, a number of the successful cases taken against banks in Spain and France have been class action suits. In these instances, a group of clients from the same development, whose mortgages were supplied by the same bank, take a legal case against the bank in a single action rather than doing so individually.
Act Now, before the banks remove your options
If you would like to examine your options, send an email to info@diarmaidcondon.com. Attach your mortgage documents and we will assess them for you, free of charge.
Don’t delay. The longer you leave it, the longer the banks have to challenge the legislation and have it changed, as happened with Ley 57/68. This law, granting the ability to reclaim deposits made for subsequently unbuilt off-plan property, changed at the behest of the Spanish banking industry in 2020. Consequently, it is now not possible to make these claims in retrospect (for properties purchased prior to 2020).
Act now, while you still can.
