Government and banks finalize a mortgage agreement for a million vulnerable households


The Government and the banking employers finalize an agreement to alleviate the burden of a million vulnerable households affected by the increase in the cost of their mortgages with the rise in interest rates that the European Central Bank has been applying since July to control inflation. In the absence of closing the last details, the text will be approved this Tuesday in the Council of Ministers so that the measures included in it can be applied from next January 1.

The objective of this package is to improve the current Code of Good Practices for vulnerable mortgage debtors, which was approved in 2012 as a result of the last financial crisis, to adapt it to the current situation. Thus, vulnerable debtors will be able to restructure the mortgage loan with a lower interest rate during the 5-year principal grace period (Euribor – 0.1% compared to the current Euribor + 0.25%). In addition, the term to request the dation in payment of the home is extended to 2 years (the delivery to the bank of the home that guarantees the loan in exchange for the cancellation of the outstanding debt) and the possibility of a second restructuring is contemplated, in case it was necessary.

The text contemplates that households with an income of less than 25,200 euros a year (three times the IPREM) that dedicate more than 50% of their monthly income to paying the mortgage, but do not meet the current criteria of an increase of 50% of the effort mortgage, can take advantage of the Code with a grace period of two years, a lower interest rate during the grace period and an extension of the term of up to seven years. The measure is aimed at families who, in the current scenario of rising money prices, “reach excessive levels of mortgage effort that force them to reduce essential expenses and jeopardize the mortgage payment, can receive adequate treatment “, says the Ministry of Economy.


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