2023-08-25 11:31:00
He euribor closed July at an average of 4.149% and the forecasts for August indicate that will continue to rise. That means the mortgage benchmark from Spain is at the level of 15 years agobefore the outbreak of the financial crisis. As a consequence, the loans mortgage variable rate that are reviewed in August and early September will see a significant increase. The new firms, both variable and fixed interest, will also bear the new indicator. Faced with this situation, there are different aids to alleviate the effects of a runaway euribor.
Government Aid: Code of Good Practices for banks
Royal Decree-Law 6/2012, of March 9, on urgent measures for the protection of poor mortgagorscreated the Code of Good Practices, which includes proposals to facilitate the payment of loans. More of 50 financial and credit institutions They have joined voluntarily.
The Government considers vulnerable people in it exclusion threshold those that meet the following scales: when the income of the family unit are not higher than 29,400 euros per year and his mortgage charge it has increased more than 20% o supone 30% of net income of the family.
Another option is that the income of the members of the family unit does not exceed the limit of three times the Public Indicator of Multiple Effects Income (IPREM) annual payment of fourteen payments. In 2023 it is 8,400 euros per year, so the maximum income in this case must be 25.200 euros. In addition, the monthly mortgage payment must have increased a minimum of 50% in the last four years.
The Government also fixes the aid according to the mortgage conditions: the loan must be on the habitual residence and must not exceed 300,000 euros in origin. Another requirement is that the entity with which they have signed the credit is among those that have joined the Code of Good Practices.
What do entities adhering to the Code offer vulnerable debtors?
The entities adhering to the Code of Good Practices offer three phases of action, according to each case. for debtors in a situation of vulnerability, the first includes from a deficiency in the amortization of capital until the expansion of total repayment term (up to 40 years)as well as a interest rate reduction for five years.
Secondly, if the previous restructuring is not sufficient, the entities can offer a removes all of your debt. Finally, if neither of the two previous measures manages to reduce the affordable mortgage effort for the financial feasibilitydebtors may request the Settlement as a definitive means of liberating the debt and the entities must accept it.
In the latter case, families may stay in your home for a period of two years satisfying an assumable income.
What does the Code offer to the ‘middle class’?
In the case of aid to family units with a few gross income less than 29,400 euros per yearwith a charge greater than 30% and with a loan that has increased by a minimum of 20%, the aid is as follows:
They can materialize freezing the monthly loan installment for one year, leaving it in the amount paid in June 2022. They may also benefit from a interest rate reduction during those same 12 months and extend up to seven years repayment term of the loan without exceeding the total 40 years.
Line of ICO guarantees for new mortgagees
Since May 2023, the Government grants ICO endorsements of the 20% of the mortgage to young people under 35 years and families with dependent minors with no age limit. The Executive qualifies this group as those who “they have solvency and financial ability to buy a home, but do not have the necessary savings for the entry“.
In addition to the requirements of age or dependent minor children, each applicant must earn less than 37,800 euros per year, 4.5 times the IPREM. In case of being two people, that limit is multiplied by two.
The guarantee can reach 25% if the dwelling, which must be the habitual residence of the person concerned, has a minimum energy rating D. Interested parties can apply for this aid directly through the financial institution with which they take out a mortgage.
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