Does the Euribor go up? So you can reduce the mortgage payment

2023-06-16 05:26:37

Today, many families are concerned about the potential financial implications they may face in connection with their mortgages. With interest rates holding high, there are concerns that monthly mortgage payments could skyrocket at the next review.

However, what some do not know is that the banks have the possibility of reduce those fees if a series of specific requirements are met. This option, known as mortgage debt restructuring, can provide significant financial relief to those who meet the established conditions.

The aspiration of anyone who has taken out a mortgage loan is to be able to reduce the monthly installments, which can be especially relevant in a context of economic uncertainty. In order to benefit from the debt restructuringit is crucial to understand the conditions and requirements demanded by the banks.

Which are the requirements

These criteria are not only based on the member incomes of the family unit, but also take into account factors such as the purchase price of the property. In essence, it seeks to evaluate the economic capacity of the client and determine if it is within the exclusion threshold established to access the debt restructuring.

There are other premises that are also taken into account to access debt restructuring. For example, the percentage of income used to pay the mortgage it must have risen at least 1.5 points since the time the loan was applied for.

The aspiration of any person who has contracted a mortgage loan is to be able to reduce the monthly installments. File photo.

In addition, during that period, you must have experienced a situation that is considered of “special vulnerability”. This includes large families, single-parent family units with children or a member with a disability, debtors over 60 years of age or nuclear families with a victim of gender violence.

Apart from the personal situation, it is also necessary to meet other conditions to be able to restructure the debt. It’s necessary that the family does not have enough assets to face the debt, that is, not having other significant economic resources.

In addition, the home for which the mortgage was applied for must be the sole property of the debtorand the loan should not have others personal guarantees or real.

Recommendations for applying for mortgages

Regarding the application for a mortgage, there are some aspects that experts recommend taking into account. For example, it is advised to have saved at least 30% of the total value of the home, since banks usually grant up to 80% of the price.

It is also important to have a good salary that allows to face the payment of the mortgage and other debts, without these commitments exceeding 35% of the net income.

In addition, it is valued to have a stable job that guarantees the ability to pay in the long term, which may imply having an indefinite contract and a certain length of service. In the case of self-employed workers, they must demonstrate the viability of their businesses.

Los banks will also review credit history when reviewing the mortgage application. This implies verifying if you have other loans and if they are being paid properly, as well as consulting lists of defaulters to detect possible defaults. In general, it is advisable not to have outstanding debts to increase the chances of obtaining a mortgage loan easily.