Spain government, banking sector agree package of measures to ease mortgage burden for over 1 million vulnerable households

Spanish mortgages market

Norbolsa | Today the Cabinet will approve a package of measures aimed at easing the financial burden of one million families who have been affected by the hike in interest rates. Households with an annual income of less than 29.400 euros, with mortgages registered up to December 2022, will be able to benefit from these measures, when the mortgage payment accounts for 30% of income and has seen a rise of 20% due to the increase in interest rates. In these cases, the banks will have to offer the possibility of freezing the quota for 12 months, a lower interest rate on the deferred principal and an extension of the loan period of up to 7 years. And, finally, facilitate the change from a variable rate to a fixed rate, eliminating the commissions on this change during 2023.

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