ANDALUCIA’S Junta is to demand that central government eliminates the controversial ‘floor clause’ from mortgages with all financial institutions.

The PSOE government has presented a proposal which backs up the bill to protect people who take out mortgages, many of them unaware of the abusive clause.

The floor clause – also known as the ground clause – is a minimum interest rate applied by mortgage lenders to protect themselves from further rate drops.

It means that people with loans taken out before the economic crisis are not benefiting from historically low interest rates.