The Government and the bank seek an “in extremis” agreement to alleviate mortgages
With the deadline set for next Tuesday with the Council of Ministers in the background, the Government and the banks are trying to reach an agreement “in extremis” about the battery of measures that they have been negotiating in recent weeks to help families to deal with rising mortgage prices due to the rise in the Euribor, according to sources close to the talks.
The intention, as the First Vice President and Minister of Economic Affairs, Nadia Calviño, has conveyed several times, continues to be that the Council of Ministers this Tuesday approves a catalog of relief measures for the mortgaged and to achieve it the Executive and the banking employers have been in continuous contact.
Is about technical meetings and also “at the highest level” that have been interspersed with telephone conversations between the banking employers and the Economy, but with which an agreement in principle has not been reached so far, the sources consulted explain to EFE. The main reason is still scope of the measures and how many thousands of families could choose to the different options to alleviate the mortgage burden that banks would offer as of January 1, 2023, beyond the offers that the sector can already make on a case-by-case basis.
The bank insists that the solutions promoted by the Executive have to be “temporary, to solve a temporary problemderived from the rise in rates and inflation”. In addition, there will be two lines of action: one that involves expanding the operation of the current Code of Good Practices, for which it would foreseeably be necessary to approve a royal decree-law -the same range of then- or a modification of it to also give access to families that maintain employment.
And, except for last-minute changes in the negotiation, the main condition to benefit from this new Code of Good Practices It will be that the income of the address does not exceed 24,318 euros per yeara figure of net income that is equivalent to three times the Iprem, the public indicator of income of multiple effects in 14 payments.
The second line of action would consist of establishing an additional protocol for “middle-class families that may be at risk due to the rise in interest rates.” In these cases, the options that are on the table are summarized in that banks freeze fees for a yearmake it possible to extend the term of mortgages if they become more than 30% more expensive and consume at least 40% of the family’s income, in addition to facilitating the change to fixed-rate loans.
By extending the term of the loan, the financial burden is immediately reduced, a relief measure that, according to sources close to the negotiations, would be applied to variable-rate mortgages signed from 2012 for a first home. Regarding the change from a variable mortgage to a fixed one, there are three ways to do it: a novation or change in conditions, a subrogation or transfer to another entity, and a new mortgage.
In the midst of these negotiations, the governor of the Bank of Spain, Pablo Hernández de Cos, considered last Wednesday “essential” to clearly identify what is meant by “vulnerable” collective when approving relief measures with the aim of minimizing risks to financial stability. During the closing of the annual convention of the Association of Financial Markets, he insisted on his idea that any fiscal policy measure that is taken is aimed at the families and companies most affected due to the increase in prices, a reflection that would also apply to the case of those with mortgages. That is why he believes that the key, “the intrinsic difficulty”, is to define what type of groups are considered vulnerable, since until now this definition was reserved for the lowest income and the cases in which a mortgagee was left without a job.
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