The Government of Pedro Sánchez will approve an extension of the Code of Good Practices for vulnerable mortgage debtors of 2023 before the end of the year.
With this measure, it is intended that many households can meet their mortgage payments with a specific aid plan in the face of the rise in the Euribor and inflation.
As reported by the Bank of Spain, last year more than 55,000 families requested this aid compared to the expected million. However, only 10% of the requests were approved.
Looking ahead to the next fiscal year 2024, the Code of Good Practices for vulnerable mortgage debtors expands the access conditions. These are the measures that will be approved:
1. The threshold to access these mortgage aid increases from 3.5 to 4.5 times the IPREM, which means that households with an annual income of up to approximately 38,000 euros will be able to access it.
2. During 2024, all early repayment commissions for variable rate mortgage loans and the conversion to a fixed rate will be suspended. Along with this, free conversions are extended to variable to mixed type conversions.
3. Once this measure ends, the permanent ceiling of 0.05% that limits the commissions applicable to changes from variable to fixed rate mortgages will be extended, so that they also include changes to mixed rate mortgages.
4. The interest rate is frozen for 12 months, that is, the installment is frozen during that period.
5. The extension of the repayment period can be extended up to 7 years.
6. And for families with income less than 25,200 euros (3 times the IPREM), the 2-year waiting period is also added.
It will be the owner or owners of the mortgaged home who must contact the entity managing their mortgage to evaluate the request for this aid.
On the other hand, adherence to the Code of Good Practices is voluntary, that is, the entity must have accepted it and only from that moment on will it be obliged to apply the measures contemplated therein.
Once informed, the client must submit an application along with documentation proving that they meet the requirements, both those related to the exclusion threshold and the limits of the price of the home.
Below we highlight the different social groups that can request help from the Code of Good Practices for vulnerable mortgage debtors if they also meet the economic threshold requirement:
