No trace of the mortgage emergency: the bank keeps Calviño's aid intact

The majority of the financial sector has adhered to the new code of good practices to alleviate the burden of mortgages on the most vulnerable households, which was approved in a rush at the last minute after intense negotiations with the sector, but whose final text ended up writing only the Ministry of Economy. Government estimates indicate that one million households can benefit from them. In practice, financial sources point out that requests from families are still not being noticed.

At the moment, little movement is being generated in household requests to restructure their debts, according to various financial sources. It must be borne in mind that mortgages are reviewed annually, so although the Euribor began to pick up before the summer, the biggest increases did not occur until autumn.

Predictably, and everything will also depend on the macroeconomic situation together with the evolution of employment, in the event that families need to restructure the mortgage loan, it could be later in the year when greater movements are noticed. Despite this, with the current data, large movements are not expected, although the entities consider that it is positive to have a tool that can be used.

At the end of November, The Government approved in the Council of Ministers a series of measures to try to alleviate the impact of the rise in interest rates on the most vulnerable households.After weeks of intense negotiations with the banking associations to try to approve an agreement that would establish concrete measures to mitigate the weight of the rise in mortgage rates, the Ministry of Economy solved the final text alone and sent a press release the night before the council of ministers where he wanted to approve it.

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Economy advanced ina statementat 11:00 p.m. that he would take the package of measures to the council of ministers the following day. In the text, there were glimpses of an agreement with the bank, but without having reached a document agreed 100% with the entities.

«In the absence of closing the last details with the bank employerstomorrow the Council of Ministers will approve a regulatory package that will alleviate the financial situation of vulnerable families or at risk of vulnerability due to the rise in interest rates, “the published note pointed out.

In this sense, Although the positions were close in the negotiations, a common document had not been agreed, but rather the details that had been agreed with the banks in the previous meetings had been incorporated and this was the text that ended up being taken to the council of ministers. After the text was approved, there was no possibility of touching it and that was the one that the banks have been signing to add little by little.

After a series of negotiations with the employers of the entities, the final text approved in the Council of Ministers included that those households with income less than three and a half times the Public Indicator of Multiple Effects Income (IPREM) could benefit from the new measures. , that is to say, about 29,400 euros per year, and that had registered a recent increase in the mortgage burden of at least 30%.

In cases where these conditions are met, entities that have adhered to the code of good practice will have to offer an extension of the repayment period of up to 7 yearswith the possibility of freezing the fee for 12 months.

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Mortgage renegotiation

The new code of good practices came to the sector at a time when bankers had already indicated that the will of the entities was for clients to pay and they were open to negotiating the conditions of the loans. What happened in the previous financial crisis still remains in memory when the perfect storm between the bursting of the real estate bubble, skyrocketing unemployment and the bankruptcy of the old savings bank system.

The situation years later is different, on the one hand the debt, both for households and companies, is at more moderate levels, but, in addition, the financial system is healthier and this is compounded by the resistance of the labor market. This is precisely one of the reasons given by banks to explain the behavior of the mortgage market. If employment holds up, families try to pay the mortgage payment.

Patricia Suárez, president of Asufin, also agrees with this idea. “The Spanish are good payers,” she pointed out in an interview.

In this regard, Suárez also highlighted that the problems for households could come later in the year when the increases begin to be more noticeable, because the increase in the installments of about 100 euros this year and another 200 euros a year would be noticeable. following that would already be a total of 300-350 euros of difference in the fee.

The fact that families are also waiting to have to request the mechanism to cushion the burden of the mortgage, makes the total payment of the mortgage more expensive in the long term. In this sense, the calculations of the association of financial users estimate that if the mortgage payment is deferred for one year for an average loan, which they consider to be around 100,000 euros, it would mean around 2,300 euros more in total.

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