Bank will help vulnerable families whose mortgages skyrocket by 30%


One of the requirements will be that the loan represents at least 40% of the household income, compared to the 50% laid down in the current code of good practice

The sharp rise in interest rates and the severe energy crisis that has blown Spanish households’ budgets has forced the government and banks to speed up negotiations to help the most vulnerable families affected by the surge in mortgages.

Financial sources confirm that after the last meetings, the agreement is practically closed for lack of final details. The main stumbling block in the negotiations has been the redefinition of the concept of ‘vulnerable’ as enshrined in the current industry code of good practice, to try to accommodate a wider range of profiles to the protection measures in the form of planned renegotiations or moratoria.

Specifically, and in the absence of the last photo, the industry’s plans would meet the requests of those customers whose mortgage payments have skyrocketed by at least 30% due to the rise in the Euribor. Of course, only households with an income of less than 24,318 euros per year, three times the IPREM in 14 payments, have access to the plan.

Another requirement that must be met is that the loan must be at least 40% of the household’s net income after the Euribor rebound has been tested. A figure that improves on the 50% set in the current code of good practice.

From the Ministry of Economic Affairs, they insist that talks with the financial sector are still open and that a final decision has not yet been made about the action that the banks will take. Sources from the department led by Nadia Calviño also clarify that the agreement finally reached with the bank will not be governed by a mandatory royal decree.

In other words, the sector will be encouraged to “self-regulate” and voluntarily take the agreed measures. In any case, the ministry has not imposed a deadline to reach a final agreement with the entities, as happened with the protection plan for the elderly or in the recent agreement reached to strengthen services in rural areas.

In this case, and according to the sources consulted, the talks may be “more flexible” as, although interest rates are rising, entities have not yet discovered peaks in their default rates.

Nevertheless, the banks do not want to tempt fate with the risk of having to make new provisions for their mortgage portfolio. And they know that the current code of good practice is insufficient to protect families hit by a crisis with obvious features closely linked to inflation.

Many requests to restructure mortgage debts are eliminated directly even under the current code of practice. According to the latest public statistics, the affiliated entities received 7,870 applications for this purpose last year. And of that figure, only 2,283 ended up in restructuring, with just four relocations. Another 45 ended up in the payment system in that case.

Source: La Verdad


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