Who is eligible for a moratorium on mortgage payments due to the coronavirus crisis?

If your economic situation has deteriorated significantly due to the emergence of Covid19 in Spain, please take note.

This will certainly be of interest to you if you also see your domestic economy starting to be jeopardized by the coronavirus. The future is uncertainbut it is true that without income a home cannot exist, and the Spanish Council of Ministers has approved a moratorium on mortgage payments for those people who lost their job or have seen their income drop.

To receive a mortgage moratorium, you must meet certain requirements.To receive a mortgage moratorium, you must meet certain requirements.

The decisions taken by the government serve in some way to provide assistance to many families who need it and who do not know how to feed themselves during this health crisis that is affecting almost the entire planet. The moratorium will entail a suspension of the repayment of the mortgage debt, so that the scheduled installment will not be paid while the royal decree is in force. But to qualify for this moratorium, not only must you see your income reduced or have no income at all, but you must also meet a number of requirements. what is explained in the decree published in the Official Gazette (BOE).

Requirements to qualify for a moratorium

  • The government’s first requirement is that mortgages can only be deferred for ordinary housing, that is, houses in which people live. As mentioned above, income has had to be reduced due to coronavirus or may be sued if you lose your job. If you are a businessman or professionalyou can do this if you have suffered a significant loss of income or a drop in sales of at least 40%.
  • Second, total household income cannot exceed three times the state’s monthly multiple effect rate (IPREM) limit for the month preceding the moratorium. That is, if at the moment this figure is 537.84 euros, They cannot exceed the family income. 1613.52 euros (three times more). If there are dependent children in the family, this indicator will increase by 0.1 times IPREM for each dependent child in families with two parents and by 0.15 in families with one parent. In addition, this limit will also be increased by 0.1 times the IPREM (€53.78) for each person over 65 years of age who is a family member.
  • In the event that the mortgage debtor is a person suffering from cerebral palsy, mental illness or mental retardation, with a recognized degree of disability equal to or greater than 33%or a person with a physical or sensory disability with a recognized degree of disability equal to or greater than 65%, and in cases of serious illness that clearly deprives the person or his guardian of the ability to carry out work activities, the limit provided for in this subsection of the IPREM will be five times: EUR 2,689 .
  • Another thing that needs to be done is the mortgage payment and basic expenses and supplies if they are higher. or equal to 35% of the net income received by all family members. That is, if the above requirements are met, but their mortgage payments plus expenses are 25% of that income, they will not have access to the moratorium.
To obtain a moratorium, a package of documents is requiredTo obtain a moratorium, a package of documents is required

How to prove compliance with these conditions

  • If you are unemployed, you must present a certificate issued by benefits management organizationwhich includes the monthly amount received as unemployment benefits or subsidies.
  • In case of termination of the activities of self-employed workers: through a certificate issued by the State Tax Service Agency or the competent authority based on the application for termination of the activities of the interested person.
  • The number of people in the house will be indicated in the family book or de facto document of the couple. Also with registration certificate.
  • Declaration of disability, dependency or incapacity.
  • Home affairs and mortgage lending.
  • A responsible statement from the debtor or debtors regarding compliance with established requirements.
  • How to request an extension

    If all the mentioned conditions are met, it is at that moment that the family will be able to request Mortgage moratorium for your bank. While quarantine continues, you can go to the bank, but do not forget about this in case of urgent need, because if you have questions, you can call.

    To obtain a moratorium, you must complete a number of steps.To obtain a moratorium, you must complete a number of steps.

    And what documents will you need to bring to your organization? Note:

    In the case of an employee, a certificate indicating the unemployment situation and indicating the monthly amount received as a benefit or subsidy. This certificate must be issued by the State Public Employment Service (SEPE).

    If you are a businessman, you must provide a certificate issued by the Tax Agency, which states: termination of activity declared by the employer. Of course, in both cases they must inform the bank of the number of people living in the house through the family register or registration certificate of the people registered in the house. On the other hand, if there is a person with disabilities in the house, You will also need to provide a certificate of disability..

    Finally, it will also be necessary to present a simple certificate from the property register of all family members, documents on the sale of the house and the provision of a mortgage loan, as well as a responsible statement from the debtor or debtors regarding compliance with the measures established by the Government decree-law. This request can now be submitted, with the period open until 15 days after the decree enters into force, which in principle is valid for one month. That is, the last day will be May 3 until the moratorium is extended.

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