Supreme Court ruling on the consequences of invalid accelerated repayment clauses in consumer mortgages

On 11 September 2019, the Spanish Supreme Court delivered a highly anticipated judgment resolving one of the most disputed issues relating to mortgage loans in Spain.

The question was regarding the consequences when clauses that allow lenders to accelerate loans upon failure to pay just one or more instalments are declared unfair and, consequently, null and void under Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts.

This has a big impact on the way mortgage loans can be enforced (i.e. whether or not the creditor can use the special fast-track mortgage enforcement proceedings under Spanish law).

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