What is the irph of a variable mortgage?

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The IRPH is a reference index used in variable mortgages . The most common thing is to reference the mortgage loan to the Euribor, especially in recent years, but for years it was more common to find mortgages referenced to the IRPH. But what is the irph of a mortgage? Today we will focus on this term and the ruling of the Court of Justice of the EU.


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What is the IRPH of a mortgage?
The IRPH or Mortgage Loan Reference Index is an indicator that became popular in. At that time, just when the economic crisis began, the Euribor was at historic highs and the IRPH was sold as being less volatile and safer. .

This index was taken from data from the Bank of Spain and was based on Chinese Overseas America Number Data the average number of mortgages that had been granted for more than three years. At first, this is how the banks sold it, it seemed like it was a less volatile and safer index. The problem was that the clauses were not clear and clients were not being informed transparently.

But while 1.3 million people signed mortgages referenced to IRPH, thinking they were better, the reality was that they were between 1.5 and 3% more expensive than with Euribor. This represents many people who have ended up paying much more money because the bank did not inform them correctly.


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what is the irph of a mortgage

The CJEU ruling
The two big problems are the lack of transparency and the formula they used to obtain the benchmark index. It was criticized that this calculation, due to its complexity, was easily manipulated and that this would explain why the IRPH remained intact when the other indices fell during the crisis.



It was not until 2018 that the European Commission wrote a report stating that the IRPH was abusive and went against European legislation.

Is my mortgage referenced in IRPH?
To know if your contract has this abusive clause you will have to review it, read it carefully because the safest thing, which is why it is considered abusive, is that the term IRPH does not appear. The most common thing is to use “average bank loan rate”. If you have found this point in the mortgage deed, you have the right to complain.