Portal de Alhama de Murcia
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When we contract with a banking entity a mortgage loan for the acquisition of a free home, we have to return the money to the bank in a certain time with the corresponding interests, to perform the calculations of the borrowed and what must be returned, the banking entity uses a benchmark that must be official published in an Order of the Bank of Spain and in the BOE.
In Spain the following benchmarks have been used:
Euribor
IRPH of boxes
Bank IRPH
IRPH of a set of financial entities
Mibor
MINT
The most used in Spain is Euribor and IRPH.
The Euribor index is the best known, but:
WHAT IS IRPH?
IRPH is a benchmark index that is calculated taking into account the average of three-year loans granted by banks.
It began to apply in mortgage loans in Spain in 1994, it is the second most used indicator in these loans and its circulation was due to the need for a new reference to protect customers from financial market fluctuations.
Until 2013 no doubts began to arise about this indicator, coinciding with the sharp decline in the Euribor benchmark, since IRPH remained at an index of 2%.
These differences between the indicators and taking into account the gradual decline in Euribor led credit institutions to maintain the IRPH;
It gave more benefits to credit institutions.
The clients of the mortgages with this indicator begin to claim in the courts in 2015 when they consider it abusive.
Although the Supreme Court gave the reason to the bank when considering this index valid in 2017, in 2018 a court in Barcelona decided to raise the question referred to the European Court of Justice
On September 10, 2019 the European lawyer has given the reason to consumers, he understands that, although the IRPH reference index is official, it does not exempt that there is a supposed lack of transparency and its possible abuse.
We must wait for the Judgment of the European Court of Justice and after this wait for the Spanish Supreme Court to also pronounce.
While this process is taking place from the Municipal Consumer Information Office of Alhama de Murcia, it is recommended that all residents of the town have a mortgage loan with an IRPH reference index, that they do not accept agreements with banks, or sign documents that may violate your rights, without first requesting information from OMIC.
Source: Ayuntamiento de Alhama de Murcia
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