The Euribor continues its incessant rise. At the end of March, the reference rate for Spanish mortgages increased to 3.647%, that is, 113 thousandths more compared to the 3.534% that the indicator marked at the end of February.
In this way, the Euribor has already chained fifteen consecutive monthly increases. As a result, the measures that the Government has approved to protect citizens from rising rates are becoming more and more important.
However, the Bank of Spain has warned that the number of people who have taken advantage of these initiatives is literally “marginal”, barely 15,000 individuals.
Aid for families with incomes of less than 25,200 euros per year
Just like specifies the Executive on the Moncloa website, these measures are due to the fact that the Code of Good Practices for vulnerable mortgage debtors has been strengthened. This category includes “those families with incomes of less than 25,200 euros a year and an increase in effort of 50%, with homes of up to 300,000 euros”, details the Executive.
Specifically, these are the aids offered to people who meet the aforementioned conditions:
– Reduction of the interest rate applicable during the last 5 years of grace period in the payment of the principal of the mortgage, going from Euribor to plus 0.25% to minus 0.10%.
– Possibility of requesting the bank to carry out a debt restructuring. The request may be made more than once.
– Duplication of the term for the dation in payment of habitual residence up to 24 months.
– Extension of the term to request social rent from 6 to 12 months in the financial institution and for a maximum amount of 3%.
Aid for families with income between 25,200 and 29,400 euros
On the other hand, there is also aid available for households with an income of less than 3.5 times the IPREM (about 29,400 euros per year) who have to pay a mortgage payment of more than 30% of their income and who have experienced an increase in this mortgage charge of at least 20%.
In these cases, financial institutions must offer the possibility of freezing the installment for 12 months, a reduction in the interest rate applicable to the principal that is deferred and an extension of the loan term of up to 7 years.
