The Málaga Appeal Court has rejected all grounds for appeal brought by SLM (Surrenda Link Mortgages) against the primary ruling by a Court of Instance in Fuengirola.

In the extensive ruling, the Courts bases its decision on 3 main arguments:

a) SLM had no authorization to sell what the judges deemed as a complex financial product made up of a mortgage loan, and a speculative investment vehicle. Not having a license to operate in Spain renders this proposition unlawful, and as such null and void ab initio.

b) The “lender” misrepresented material facts pertaining to the associated investment risks, labelling the product a safe choice to avoid inheritance tax (IHT) but also, a safe (again) bet to achieve an income. This turned out to be false.

c) SLM sold the product through a network of unqualified financial advisors, and a “selected” group of lawyers who, naturally, had zero financial investment capacitation or knowledge.

The high provincial Court rejects SLM’s attemp to fragment the product into a benign mortgage loan and the investment “arm” of the product, confirming that they could no exist without each other in the open market.

The ruling can be appealed by SLM at the Supreme Court, an appeal that would be seen as cruel, unecessary and a mere delay tactic to prevent the inevitable from happening: the invalidation of the mortgage loans on the claimants´ properties and their right to move on with their lives.