The solution of the saddle point interface problem arising in hybrid formul
ation with the Lagrange multipliers for elliptic problems with nonmatching
grids is considered. The preconditioner is constructed using frequency filt
ering decompositions of the local Schur complements. The convergence rate o
f the resulting iterative process does not depend on the size of the interf
ace problem. The approach is applied for the treatment of the local refinem
ent procedures and considered as an alternative to the refinement with slav
e nodes or full closure of the grid. Numerical experiments on the convergen
ce rate are presented.