Rounding off a mortgage interest rate

Rounding off interest rates on variable-rate mortgage loans is something that has frequently been done by banks, as it used to be established by a specific clause on the contracts that allowed rounding off upwards.

Limits to this practice were set by Law 44/2002. All new variable-rate mortgage loans or credits taken out from 24 November 2002 with a rounding off contract clause would only allow to round off to the next closest interval, without exceeding an eighth of a point.


Euríbor      Diferencial      Tipo de interés      Redondeo

   -0,191            1,5                    1,309                  1,250

   -0,179            1,5                    1,321                  1,375 

Law 44/2006Abre en ventana nueva established that contract clauses that allowed an upward rounding off on loans taken out by consumers would be considered abusive.

Therefore, if you find that your bank continues using an upward rounding off, you must know that this practice does not comply neither with current regulations nor with best banking practices.

You may file a claimAbre en ventana nueva, if you wish.

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