2015
10/25

Category:
Mortgages

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Spain’s Sabadell to keep ‘floor clause’ mortgages

MADRID Oct 23 Spanish bank Sabadell
said on Friday it would keep selling mortgages with a so-called
floor clause, which impose a limit on how far mortgage
interest rates can fall in line with a benchmark rate.

The terms of these mortgages are clearly marked to potential
buyers, Chief Executive Officer Jaime Guardiola said in a
conference call.

The removal of the widely-used floor clauses, following
protests by consumer rights groups, may hit bank profits,
analysts fear.

(Reporting By Jesus Aguado; Writing by Sonya Dowsett; Editing
by Paul Day)

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