The entities want to have the protocol ready, which will allow them to cope with the increase in tariffs, before presenting their results next week
Talks and exchange of documents between the banks and the Ministry of Economy to identify the measures that could benefit lower-income families who suddenly increase their mortgage have not materialized. In general, the agreement is “well defined”, according to sources of the negotiations, but lacking the heading formalizing the new protocol of action that will extend the households benefiting from the current Code of good banking practice for families in difficulty. In practice, the big novelty will be to expand the number of households that, depending on their income and the money they spend on the installments they pay each month, can benefit from an extension of the term of their mortgage to five years.
However, the calendar is progressing against the financial entities, whose executives want the agreement ready before the round of presentation of their quarterly results. It’s next week when the listed banks (Santander, BBVA, CaixaBank, Sabadell and Unicaja, as Bankinter did this Thursday) make their accounts public from January to September.
The industry hopes that when that time comes, they will have signed the pact with the economic vice president, Nadia Calviño, who is leading these negotiations. Exactly this Thursday, Calviño himself thanked “all the proposals” presented by the bank, while “the teams are analyzing them and working intensively to see as quickly as possible which can be the most effective.”
The proposed plan, which is subject to last minute amendment, essentially consists of extending the maturities to a maximum of five years, provided that the resulting period does not exceed 40 years from the granting of the loan and that the payment term is not less than that of the last subscriber before the assessment.
“Whether the deferral is formalized by a modification of the mortgage loan or by another financially equivalent formula, the interest rate will be the same as for the operation affected by the postponement,” the text of the document it works with, clarifies. this newspaper has had access. In other words, the principal of the loan is amortized in new installments but continues to accrue the initially agreed upon interest.
Defined conditions
To access this protection measure, which is valid for one year for mortgages taken out from January 1, 2012, the beneficiaries must meet some basic requirements. To start with, your mortgage payments have become more than 30% more expensive due to the rise in the Euribor. Something that, judging by the behavior of the indicator, could easily happen in the loans under review from now on. The Euribor shot up another 49 thousandths this Thursday to 2.733%, keeping the preliminary October average above 2.6%. A year ago, the average was -0.477%.
Families applying for the aid will also have to demonstrate that the financial burden of the loan is at least 40% of their net income. And they can only access the plan if they don’t enter more than 24,318 euros per year (three times the IPREM in 14 payments). At the time of the application, they will have to prove their financial and property situation by submitting documents such as the last three pay slips, an income certificate or the income tax and VAT return in the case of self-employed persons, in addition to family and registration documents. and property records issued by the property registry.
Everything indicates that the final agreement is near. But the associations of consumers and users believe that, as the draft is written, the plan is insufficient. At a meeting this week that also included members of the European Banking Authority (EBA), they made clear to the industry that they need to be more ambitious and include other alternatives, such as the direct freezing of mortgages, in line with the proposal that CaixaBank launched a a few days ago within the negotiations with the Ministry of Economic Affairs.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
