Evaristo Nievas Gomez - Lawyer / 699654217
The IRPH Entities or Reference Rate for Mortgages is the second rate of reference mostly used for mortgages in Spain and it is the alternative to the EURIBOR. It is published every month in the Official State Bulletin under the name «Average of mortgages over three years, for the purchase of homes, as granted by credit entities in Spain».
Its official name tells us that the value of the rate is calculated from the monthly average of the interests that banks apply on new mortgages. Effectively, because of the complexity of the reference rate IRPH-Entities for the average consumer, who cannot know, without adequate information, that not all the rates fluctuate in the same manner depending on their configuration and that their behaviour cannot be forecasted without knowing the variation scenario that has taken place.
This rate is very detrimental financially compared to the Euribor. Its declaration as abusive can represent the reimbursement of an average of 20 thousand Euros for a mortgage. The decision of the Supreme Tribunal isn't final and there are reasons to think that the criteria of non-abusive clause could be changed. At the moment, there is a preliminary question treated by the tribunal and the Justice Tribunal of the European Union (TJUE) will have to give a final ruling.
Up until now, the TJUE has modified and corrected the jurisprudence of the Spanish Tribunals regarding consumers, for a better protection of consumers against banks. So far, in the Tribunals of Arrecife (Lanzarote) and Puerto del Rosario, we have managed to get those rates cancelled.