Key takeaway: IRPH claims usually come down to transparency — what the bank explained at signing, and how the clause is drafted in your deed.
What to send (fastest review):
- Mortgage deed (“escritura de préstamo hipotecario”)
- If repaid: approximate settlement date (or current balance if active)
Send it here: Contact CostaLuz Lawyers.
The Court of Justice of the European Union issued a ruling on 13 July 2023 which could pave the way for claims against banks which used Spain’s mortgage price index (IRPH) as an alternative to the interbank rate Euribor to set variable mortgage rates.
The ruling, regarding the interpretation of Directive 93/13/EEC on unfair terms in consumer contracts, emphasised the importance of transparency and accessibility of information in assessing the potential abuse of clauses in mortgage contracts.
What was the main issue in the IRPH case?
A Spanish court referred the case to the EU Court of Justice after two consumers contested a clause in their variable interest rate mortgage contract that referenced the IRPH (Reference Index of Credit Institutions) as the basis for interest rate revisions. They argued that the clause was misleading and lacked transparency.
The consumers sought the nullification of the clause and compensation for alleged damages resulting from its application.
Ruling: accessibility of information is imperative
The Spanish court presented several questions as part of the case, but only one was addressed by the Court of Justice. It focused on the relevance of another circular, Circular 5/1994, which stresses that consumers should have access to a negative spread to be able to align the interest rate with the market rate.
The court emphasised that consumers can only make informed decisions if they’ve had the opportunity to assess the economic consequences of the mortgage contract they’re going to sign.
What are the implications of the IRPH ruling?
This ruling highlights the importance of transparency and accessibility of information in mortgage contracts. It also underscores the role of national judges in evaluating specific cases and determining the classification of contractual clauses.
Key legal point
IRPH clauses are not automatically invalid.
Spanish courts must examine each case individually and determine whether banks provided clear and transparent information about how the IRPH index worked when the mortgage contract was signed.
If the bank failed to explain how IRPH worked, how it was calculated, or how it compared with other reference indexes such as Euribor, the clause may be challengeable under Spanish consumer protection rules.
How do I get a refund on the excess interest charged on my IRPH-linked mortgage?
If your mortgage loan contains the IRPH clause and is deemed abusive by a Spanish court, you have the right to receive a refund.
At CostaLuz Lawyers, we specialize in assisting our clients in reclaiming refunds from banks that have implemented abusive clauses in mortgage agreements. We were among the first to take legal action against Spanish banks and have successfully helped numerous clients obtain refunds and improved mortgage terms.
FAQs — EU ruling and IRPH mortgages
Can I claim if my mortgage is already repaid?
In many cases, yes. What matters is how the IRPH clause was presented and documented at the time the mortgage was signed.
What should I check in my deed?
Look in the interest rate section of your mortgage deed (“escritura”) to see whether IRPH is listed as the reference index instead of Euribor, and whether the bank clearly explained how the index works.
What is the fastest way to start?
Send your mortgage deed for a quick legal review and we will confirm whether the claim route may be viable.
👉 Start here:
Contact CostaLuz Lawyers
Related legal update
If you want to understand the court decision in more detail, you can read the key points of the ruling here:
CJEU ruling on IRPH mortgages (refunds: key points)
How can I check whether my mortgage uses IRPH?
If you are unsure whether your mortgage includes IRPH, you can start by reviewing the mortgage deed and checking the reference interest rate clause.
You can also follow this guide:
IRPH Spain (2026) — how to check your mortgage deed
Quick deed check
If you would like us to review your mortgage deed and confirm whether the IRPH clause may be challengeable, you can send it here:
Which abusive clauses do we check in your Spanish mortgage?
- Floor clause (Clausula suelo) — hidden minimum interest rates
- Abusive late payment interest — rates exceeding legal limits
- Mortgage expenses — notary, registry, and management fees unlawfully charged to the borrower
- Opening commission — upfront fees that may be reclaimable
- Early maturity clause (Vencimiento anticipado) — allowing the bank to demand full repayment after minor defaults
- IRPH — a mortgage index consistently higher than Euribor, often applied without adequate transparency
- Multi-currency clauses — loans denominated in foreign currencies exposing borrowers to exchange rate risk
If any of these apply to your mortgage, you may be entitled to a refund. Request a free mortgage review
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
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This content has been prepared with the assistance of artificial intelligence and reviewed by María Luisa de Castro, a lawyer specialising in Real Estate Law and founder of CostaLuz Lawyers.
The information provided is general and indicative in nature. It should not be used as the sole basis for making professional, legal or investment decisions, and CostaLuz Lawyers assumes no responsibility for decisions taken solely on the basis of this content.
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