The Court of First Instance and Instruction number 5 of Jaén has partially annulled a multi-currency mortgage in what constitutes the first judgment issued in the province regarding mortgage loans in foreign currency, also known as multi-currency loans.
Multi-currency mortgages are a type of loan that is subscribed in euros, but whose principal and interest are paid to the bank in a different currency, usually the Swiss franc. the Japanese yen, to take advantage of the exchange rate difference and pay lower fees.
The boom of this type of credit occurred just before the crisis, when the Euribor was around five percent and the interest rates of these mortgages did not exceed one percent. However, the depreciation of the single currency and the fall of the euribor triggered enormously the quotas paid by the mortgaged under this formula
As reported by the lawyer Miguel Pérez de Yrigoyen in a statement,
the suit was filed on behalf of a consumer jiennense, airline pilot, requesting the partial nullity of the mortgage to consider that the bank did not adequately explain the content of the clause that referred to the mortgage loan in Japanese yen, and also claimed the return of the expenses of formalization of the mortgage loan, specifically those of notary, Land Registry, and agency.
The ruling, consulted by Europa Press, makes an analysis of the regulations applicable to consumers also applicable to this type of banking products, the status of the case law in Spain, the risks of the multi-currency mortgage and the information that should have been provided by the entity.
The affected consumer had seen how his mortgage, referred to in Japanese yen, did not decrease in capital proportionally to the capital actually paid, and thus having subscribed a loan of 170,000 euros and having amortized more than 65,000 euros they still owed more than 160,000 euros to the change, due to the appreciation of the yen against the euro. This risk of appreciation of the Japanese currency is the one that the bank omitted in the previous commercialization process.
The bank, according to the lawyer, was declared in default by not responding to the lawsuit and has not been able to demonstrate that there was a prior commercialization procedure in which the consumer and claimant were given all the information on the risks of the mortgage product.
The ruling states how this type of mortgages were offered jointly and indiscriminately to the members of the pilot group and flight personnel affiliated to the Sepla union, of which the mortgagee was a member when he was an airline pilot, thus confirming that there was no an individualized analysis of the profile of the consumer and without being explained all the risks of the mortgage product that was being sold to him.
In this way, the partial nullity of the mortgage loan is declared, declaring clauses referring to currencies other than the euro not applicable, establishing that the initial capital subscribed in the total amount of amortized capital must be reduced during the life of the loan.
Also condemns the bank to the return of notary fees, registration of property and agency, all of them formalizing the mortgage loan as they were unilaterally imposed, in addition to condemning the bank to pay all costs of the judicial process.
“The novelty of this ruling is that it is the first time in the province of Jaén that a judicial pronouncement on a multi-currency mortgage is issued applying the jurisprudential doctrine established by the Supreme Court in November 2017,” the lawyer indicated.