On Wednesday18th March 2020 Royal Decree 8/ 2020 of the 17th March came into force with various economic measures to help the situation of those people who are suffering considerable economic losses as a result of the emergency situation.
One of the measures is the possibility of a delay in mortgage payments, which is referred to in articles 7 to 14 of the Royal Decree.
It allows for the possibility of delaying mortgage payments so the people do not lose their home when they are temporarily in a very vulnerable situation.
What is mortgage payment delay?
Be careful! Not everyone is entitled to it. It is intended for those in financially weak situations: those who have lost their jobs or have had a significant reduction in income.
You can request a delay
-If you are unemployed – you have to prove this, or if you have seen your income reduced.
-If the income of your family in a normal situation i.e. in the month before Covid-19, not exceed 1612,52 Euros a month.
-If you have children or you are responsible for anyone 65 years old or above, you can increase this amount by 57,74 for each one of them.
-The payment of your mortgage and of basic supplies must be equal to or higher than 35% of your net income
-If owing to the emergency situation your economic resources are being reduced and the proportion of your household income needed to maintain your mortgage payment has increased by 30% or more, or if there has been a fall in sales of at least 40%.
How do I apply?
you must contact your bank, by speaking to your gestor, or by going on-line
What documents are needed?
Proof of unemployment or economic losses
-Libro de familia (or proof of cohabitation) if appropriate
-The house-purchase agreement (la escritura)
-Banks may request other documents.
When will I know if I have been granted a delay in payments?
The bank must reply within 15 days.
If you are in this situation, APPLY NOW!