The Code of Good Practices: A Lifeline for Mortgage Payment Troubles

He Bank of Spain has recalled that families who cannot pay their mortgage have the Code of Good Practices, a resource that banks can accept voluntarily and that establishes measures to help mortgage holders in difficult economic situations. If you were not aware of the existence of this code, below we will tell you what it consists of and the necessary requirements to adhere to it.

Requirements to benefit from the Code of Good Practices

To access this resource, it is necessary that the bank with which the mortgage is contracted is adhered to the code and other conditions are met, such as the guarantee of the loan being the Habitual housing and that the property does not exceed 300,000 euros. Furthermore, the economic requirements established in section “exclusion threshold”.

Check if the bank adheres to this code

Not all people who have a mortgage debt and encounter some type of problem in dealing with it can benefit from the aid included in this code. Thus, if you find yourself in this situation and want to know if you can receive any of this aid, before starting with more paperwork, the first thing you should do is check if the bank with which you have your mortgage adheres to this code.

The Bank of Spain itself has on its website a list in which you can consult all the banks that are adhered to this code. If your entity is on the list, you can continue with the procedures.

What does the aid consist of?

Once you have verified that your bank is on the list of entities adhering to this code, you must know what aid you can benefit from (if you also meet the rest of the necessary requirements). The code’s relief measures include debt restructuringthe offer of a haircut or the request for payment.

Until when can you request?

The CBP applies to mortgage loans contracted before December 31, 2022 and the deadline to request aid is extended until December 31, 2024.