How the moratorium on mortgages due to the coronavirus works

by Alex Musk

Within the economic measures to contain the effects of the coronavirus pandemic, we find the moratorium on mortgages. However, it seems that there are still fringes to understand about this measure.

Moratorium on mortgages due to the coronavirus

Due to the crisis that is taking place in relation to Covid-19, the Government, within the package of measures to try to alleviate the economic effects, has proposed one of special relevance that has already been carried out in other countries affected by the pandemic. We are talking about the moratorium on mortgage loan payments for citizens who are suffering the consequences of the suspension of their medicare jobs due to quarantine.

In this way, a user who works as an employee who loses his job as a result of the pandemic will have the possibility of not paying the mortgage to his bank while the emergency measures last.

In the case of being self-employed, it is necessary to demonstrate that there has been a significant drop in income during this period. In addition, it is essential that your annual income does not triple the Iprem; that is, it must not exceed 7,519 euros. If they have family, children or spouse at home, or disabled dependents, the limits are adjusted.

It has also been communicated that it will not be allowed to interrupt the supply of electricity, water, or natural gas to all those people who, due to the situation in which they find themselves due to the coronavirus, cannot make the corresponding payments. The competent authorities are contacting all the companies that provide these services to give them the order.

Another important aspect of this rule is that the validity of the electric social bonus will be extended, for all those who had to renew it exactly in these months, they will be able to do so until September. The revisions of maximum sales prices to the public related to butane or natural gas cylinders will also be canceled.

How has the mortgage moratorium been 

This is another of the countries that have decided to adopt this rule to try to help its citizens as much as possible. So, all people who are in a position to request this type of help will be able to stop paying their mortgages and interest in a period of time that can last up to 18 months.

Based on the type of mortgage we have, the help will be different:

If you have a variable mortgage: Paying the interest on this type of mortgage will become the responsibility of the Mortgage Solidarity Fund, which has been created expressly for the occasion.

In the case of having a fixed and variable mortgage, it is still the user who has to bear the capital expenses, differential, or fixed interest, but these must not be paid until the moratorium expires.

The requirements that all citizens who want to enjoy these advantages must meet are as follows:

  • Have a mortgage for your first home.
  • That there is a period of at least one year to repay the debt.
  • That the outstanding debt does not exceed 250,000 euros.
  • The total income of families requesting this service cannot exceed 30,000 euros.
  • All people who require this service must have been out of work for at least one month.
  • The interested parties cannot have had delays with the payment of the mortgage, at least in a period of fewer than 90 days.

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