By Anna Ellis • 19 January 2023 • 15:57
A total of 54 banks adhere to the new Code of Good Practices approved by the Government. Image: Economic Affairs and Digital Transformation / Spanish Government.
Folks struggling with their mortgage repayments in Spain will be pleased to hear that financial institutions have widely subscribed to the modification of the Code of Good Practices for vulnerable households.
This means they have adhered to the new Code approved by the Government, which includes a wide range of measures that will enable up to one million households to see their mortgage burden alleviated. The commitment of most banks and savings banks will enable more than 97 per cent of mortgages to be covered.
The measures included in these codes are aimed at alleviating the financial situation of families affected by the rapid rise in Euribor, especially those vulnerable or at risk of vulnerability, preserving financial stability. The implementation of these measures will facilitate a more gradual adaptation of households to the new interest rate environment.
Households with an income of less than three and a half times the IPREM (€29,400 per year) and a recent increase in the mortgage burden of at least 30 per cent will be able to benefit from these measures. For all these cases, financial institutions must offer an extension of the repayment period of up to 7 years, with the possibility of a 12-month freeze on repayments.
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Originally from the UK, Anna is based on the Costa Blanca and is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]
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