CORONA VIRUS: What it means for your Spanish mortgage

  • Murcia Services by Murcia Services
  • 2 years ago
  • Blog
  • 0

Undoubtedly, the COVID-19 Pandemic is a financially worrying time for many of us, however, if you have a mortgage in Spain, there is help available.

The Spanish Government, led by Prime minister, Pedro Sanchéz, has a deal of 200 billion euros in financial aid in Spain, along with various other measures to help the nation.

For those who have lost at least 40% of their household income, whether you´re self-employed (autónomo), or a contracted worker, you may be able to apply for a moratorium of your mortgage payments.

In this article, we will briefly talk about who is eligible for a moratorium, how you can apply for a moratorium, and how long the aid will last for.

So, who is eligible for a moratorium?

For you to be eligible for a moratorium, you´ll have to meet ALL of the following requirements;

You must either become unemployed or if you´re self-employed, then you must have lost at least 40% in revenue.

You can only apply for a moratorium for your main residence.

Your total household income must not be more than 1,613.52€ for the month before the moratorium, which is 3 times the IPREM limit of 537.84€, the Spanish indicator for determining the eligibility of social benefits.

The mortgage, including basic expenses and supplies, must be greater than 35% if the net household income.

How you can apply for a moratorium?

You will be able to apple for a moratorium directly with the bank that the mortgage is with, providing that you meet with all the conditions above.

Visiting your bank is still one of the exclusions during the lockdown, so you will be able to talk to them in person, however, depending on which bank you are with, this process may be able to be done online.

It´s worth consulting your bank before leaving the house.

Naturally, you´ll also be required to produce a few documents to support your claim;

If you have become unemployed, you will need to a certificate on unemployment. You can get this SEPE, the state employment service.

Of course, if you have become unemployed, then you´ll be received the “Paro”, which is the Spanish unemployment benefit. With the Paro, you´ll be given a document which states how much you´ll be receiving in benefits, this document will also need to be provided.

You´ll also have to provide your Padron Certificate (empadronamiento), so that the bank knows how many people are living in your home.

If you have someone with disabilities living with you, you must also present their disability certificate.

Finally, you will have to present your “Nota Simple”.

How long will the moratorium last?

If you meet all the requirements and have submitted your application successfully, then you will be able to apply for a moratorium on your mortgage for up to 15 days after the state of alarm has been lifted.

However, the Government has yet to clarify month minimum and maximum periods for this aid.

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