2023-12-23 11:51:02
He Government will extend the bonus so that the change of a mortgage, from variable rate to fixed rate, continues to be free. The meeting, dated December 18, 2023, of Nadia Calvinofirst vice president and minister of Economy, Commerce and Business of the executive, with the employers of the credit institutions of the AEB, UNACC and CECA, the representatives of the financial users and the Bank of Spain has resulted in this measure, celebrated by the Spanish.
During the meeting between the economic sphere and the financial sector, the implementation of the Codes of Good Practices for mortgage debtors signed with financial institutions. The Code of Good Practices for debtors at risk of vulnerability, launched at the end of 2022was conceived as a preventive measure to provide a safety net to the debtors most affected by the increase in interest rateswhile preserving the financial stability.
Until September 2023, the Bank of Spain has registered more than 55,000 applications for codes of good practice regarding the mortgage, the highest figure to date, highlighting its necessity and usefulness. Added to these figures are alternative relief measures agreed between financial entities and their customerssuch as renegotiations, refinancing and early repayments.
He Government will respond to demand by expanding the income threshold to access the Code of Good Practices for debtors at risk of vulnerability, increasing it from 3.5 to 4.5 times the IPREM. This will allow households with an annual income of up to approximately 38.000 euros can benefit, covering around 100,000 additional households.
Although there is no perceived macroeconomic or financial risk in the area mortgagethe economic vice president highlights that households with incomes up to 38,000 euros are the most affected
due to the rise of interest ratesjustifying the need to establish a safety net for those who require it.
Additionally, the suspension of all early amortization fees for credits related to the variable rate mortgage and the conversion to a fixed rate, with free conversions from variable to mixed rates. In addition, the extension of the permanent ceiling of 0.05% is contemplated, limiting the commissions applicable to changes of mortgages from variable to fixed rates, also including changes to mixed-rate mortgages once this measure ends. These actions seek to alleviate financial pressure on households and strengthen stability in the mortgage sector.
This is how the Government will ease mortgage management
Among the relief measures considered for all those families or individuals who have a mortgage in force and may have difficulties paying it, Calvinorepresenting the Governmentinsisted on the need to inform about the different options offered for mortgage relief, among which the following three can be highlighted.
The freezing of type of interest for 12 months, regarding the freezing of the quota during that period. The extension of amortization period up to 7 years In the case of families that have an income of less than 25,200 euros, corresponding to 3 times the IPREM, the 2 year grace period.
#changing #mortgage #free