The difficulty paying mortgages has become an increasingly severe concern in recent months, due to the constant rise in interest rates. Although it is true that during the month of August mortgages gave a slight respite, September is usually presented as a complicated month for many families in economic terms.
Going back to school for children, paying taxes and other financial commitments are often compromise family finances at this time of the year. For reasons like these, and given the general difficulty in paying mortgages, from the Government Measures have already been taken to alleviate this burden. Specifically, a series of aid aimed at paying mortgagesproviding notable support for families to cope with this situation more effectively.
Code of Good Practices
With the Royal Decree-Law 6/2012, of March 9of urgent protection measures for mortgage debtors without resources, the Code of Good Practices, an aid that many families at risk of social exclusion or vulnerability can opt for this September to pay their mortgages. The requirements are that the mortgage must be linked to the main residencewhich should not have been formalized after December 21, 2022that the cost of purchasing the home subject to the mortgage cannot exceed 300,000 eurosand that the family economy must have suffered a significant alteration during the last four years.
Image of a person using the calculator
By meeting these four conditions, it would be possible to benefit from this Code of Good Practices. However, How this aid supports families varies by income:
– Families with income less than 25,200 euros (the mortgage represents 50% or more): if the effort rate has increased by at least 1.5%, you can enjoy a grace period of 5 years (only interest is paid), access a rate interest rate of Euribor-0.10% for 5 years, and extend the term for repayment of the mortgage loan to a maximum of 40 years. On the other hand, if the increase in the effort rate is less than 1.5%, the conditions change; The grace period would be 2 years, a reduced interest would be applied during the grace period and the repayment period would be extended by up to 7 years, as long as the total does not exceed 40 years.
– Families with income of up to 29,400 euros (the mortgage represents 30%): in the event that they have experienced an increase of 20% or more in their payments, these families could freeze payments for 12 months or change the interest rate from variable to fixed.
Request for a withdrawal
This type of help goes one step further, being aimed at those families whose mortgage payment still exceeds 50% of income, even having implemented the measures of the Code of Good Conduct for incomes of less than 25,200 euros. In this case, there is the possibility of requesting a partial debt reduction; that is, a removal, with which a part of it is forgiven. The request for this type of aid is made directly to the banking entities with which the debt is incurred. Knowing this, it is important to keep in mind that The decision to accept this reduction corresponds to the bankso it may or may not be approved.
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Settlement
If the removal request is not approved, there is the option of requesting “dación en pago”, which means that The debt would be canceled by handing over the home to the bank. In this scenario, one could also request the possibility of stay in the home as a tenant, with a low income, for a period of 2 years. As in the previous section, This help is requested from the bank, which requires the user to provide a series of documents to know their economic and financial situation. Likewise, as was the case with the removal request, dation in payment may or may not be accepted. According to the specialized website HelpMyCashthe process of issuing a response “can take between three and six months.”
Three people meeting at a bank branch
ICO guarantees for young people and families with minor children
People under 35 years old and the families with minor children have the option to request the ICO guarantees, approved a few months ago in the Council of Ministersas detailed in a Press release issued by the Ministry of Transport, Mobility and Urban Agenda. With this help, the Government supports the 20% of the mortgage loan. Since banks typically finance the remaining 80%, those who meet the relevant requirements can get full financing of the amount necessary to purchase a home. Furthermore, if you have a D energy rating, the loan amount can represent up to 25% of the total price of the home.
Within the conditions to benefit from these guarantees ICOIn addition to those already mentioned, it must be added that the gross annual income of those under 35 years of age must be less than 37,800 euros. In the event that there are two beneficiaries, The joint limit is 75,600 euros (i.e. the threshold is doubled). On the other hand, for families with minors in their care, the amount allowed will increase by 0.3% for each additional child; in single parents, the increase will be 70%.
Image of two people shaking hands to agree on a mortgage guarantee
The deadline to submit the application will be December 31, 2025with the possibility of extending this period for two additional years if necessary; This procedure can be managed directly with the bank where the mortgage is requested.
2023-09-08 05:10:16
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