2023-06-18 05:19:02
Double-edged weapon. The mortgage agreement between the Government and the banks does not finish starting half a year later. Families that ask to take refuge barely exceed thousands, but those that finally end up benefiting are less than a third. And one of the big reasons, according to transfer to Vozpopuli financial sources, is the notice from the banks to the most vulnerable clients that they will go to the delinquent file and the credit tap will be closed. A warning that discourages resorting to the pact despite the Euribor rally to the 4% threshold.
Nadia Calviño, economic vice president of the Government, forced a mortgage agreement at the end of 2022 before the path initiated by the European Central Bank (ECB) to control inflation. The aspiration was to reach one million familiesbut from the outset the banks lowered the potential universe to some 750,000 mortgaged. José Antonio Álvarez, CEO of the Santander until this year, already warned that it could stigmatize customers who were classified as delinquent and their access to credit could be limited.
At the time of presenting the agreement, in November 2022, the Ministry of Economic Affairs ruled out that the extensions of terms and moratoriums, among other measures, implied a “direct reclassification” of the credits as delinquent, which would have raised the cost through provisions for entities. But The reality is that the majority of those with mortgages who apply for aid would be considered in ‘stage 3’ (as the dubious are known in financial jargon) and therefore they would be automatically excluded from any other type of financing, as stated by one of the large Ibex banks.
The most vulnerable, the harmed
Under this category would be included the beneficiaries of two of the three points on which the agreement was drawn up. These are the first two aimed at vulnerable families. The first reinforced relief for vulnerable households covered by the Code of Good Practices valid and for incomes of less than 25,200 euros per year. In this case it offers the interest rate reduction during the 5-year grace period (up to Euribor – 0.10% from the current Euribor + 0.25), and the possibility of carrying out a second debt restructuring and extending the term to two years to request the dation in payment of the house.
“The increase in the cost of financing has caused the mortgage payment to have grown by 46% since 2019”
Also under threat of being included in the delinquent file are the beneficiaries of the second aspect of the agreement, which expanded the scope of application of said code so that those households that do not meet the current requirement of increasing the mortgage effort of 50% can access a grace period of two years, a more favorable rate during that period and the extension of up to 7 years on your loans.
ECB pressure
With the eighth rate hike applied by the ECB in less than a year, the Euribor will break the 4% barrier. And it remains to be seen how long it will remain at those levels in view of the fact that the Eurobank promises a strong hand to curb inflation and points to another quarter-point rise in July. The increase in the cost of financing has caused the mortgage payment to have grown by 46% since 2019, according to estimates by the Idealista real estate portal.
“Calviño and the bank employers will meet on June 29 to review the mortgage agreement, with little room for maneuver due to the July 23 elections
The pressure of interest rates on family budgets will be more aggressive from the summer, when it will be one year since the start of the upward cycle by the ECB and when the repricing of the mortgage installments will almost completely include the increases, as indicated by sources close to the banks. This will be the key moment to evaluate the mortgage agreement, as transmitted by the entities, which in any case, insist that they analyze case by case so that the mortgaged do not stop paying the installments.
Before the call for early elections on July 23, the government promised to expand the scope of the mortgage agreement, a possibility that is flatly rejected by the banking sector, which reluctantly agreed that the agreement would create a new code for families with incomes. of less than 29,400 euros.
Calviño and the sector have met on June 29 to review the agreement in the midst of the threat of further rate hikes, but with little room for maneuver to promote changes before 23J.
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