Date: December 25, 2023 Time: 17:09:23
The Euribor drops and gives a respite to all mortgage holders who have been suffering constant increases in their mortgage bills all year. Now the last Council of Ministers of the year is ready to approve a significant expansion in the Spanish Government’s mortgage relief measures. These new provisions are expected to allow an additional 100,000 families with annual incomes of up to €37,800 to benefit from the aid, a significant increase from the fewer than 7,000 households that have received assistance so far.
Changes in mortgage holders who can benefit
So far, these measures have been limited to families with variable-rate mortgages and rents of up to 29,400 euros. However, only 12% of the 55,000 applications received by banks have been approved.
What are the mortgage relief measures?
The Executive’s proposal includes the freezing of the mortgage payment for 12 months, the extension of the repayment period up to 7 years, and a grace period of 2 years in cases of income less than 25,200 euros. These measures aim to provide a broader financial safety net for affected families.
Suspension of commissions
In addition, it is planned to maintain the suspension of all early repayment commissions for mortgage loans from variable to fixed rates during 2024, now including conversions from variable to mixed rates. After the end of the extended measures, a permanent limit of 0.05% on commissions for these mortgage changes will be established.
Legal protection for the elderly and disabled
In another significant move, the Government is preparing to introduce a legal change to prohibit fees for over-the-counter cash withdrawals for people over 65 or with disabilities. Although most financial entities no longer apply these fees, the measure seeks to provide additional legal protection.