The Supreme Court in Madrid has ruled that Spanish banks must offer more favourable terms to mortgage holders by removing ‘floor clauses’, which prevent interest rates dropping below a certain level.
BBVA, Spain’s largest bank, has just announced that it will be removing minimum interest rate limits from over 460,000 current mortgages, thereby allowing the rate of interest to fall in line with the benchmark rate. This is great news for people looking to borrow money to purchase property and is likely to stimulate demand for Spanish property
For full details take a look at this Financial Times article at http://www.ft.com/intl/cms/s/0/43f7b1c4-d440-11e2-8639-00144feab7de.html#axzz2XJUM3rBW
