Dossier of assistances for people with a mortgage or non-mortgage credit or loan
State: NOT AVAILABLE since 9 May 2021.
Addressees: People with mortgage and non-mortgage loans or credits who are in a situation of economic vulnerability.
Administration granting the assistance: Government of Spain.
In order to tackle the economic and social impact of Covid-19, Royal Decree-Law 8/2020 of 17 March and Royal Decree-Law 11/2020 of 31 March contain a series of protection measures for family units in a situation of social or economic vulnerability.
- People who are unable to pay their mortgage instalments can request from the financial institution with which they signed the loan or credit a moratorium for postponing the payment of their instalments. The adjourned amounts will be returned once the State of Alarm has terminated and on a pro-rata basis, with no additional interest, during the rest of the life of the loan.
- In the case of non-mortgage credits or loans, the moratorium permits the temporary suspension of payment of the instalments (capital and interest) of any loan or credit in force on the date of entry into force of Royal Decree-Law 11/2020. Consequently, the maturity date of the contract will be extended by the suspension period, with no additional interest or modification of the rest of the conditions.
What do you need to know to request this assistance?
In these pull-down menus you will find the necessary information for commencing the process of applying for the moratorium of the payment of your instalments.
If you have any query, you can call 010. For any assistance, you can send an e-mail to your district’s housing office. You can also find more information in the FAQs section. Download PDF's FAQs guide on the following link.
In the case of mortgage credits or loans, this assistance is addressed to people who are in a situation of economic vulnerability as a consequence of the Covid-19 sanitary crisis and who have difficulties in paying their mortgage instalments, provided the loan or mortgage agreements correspond to the acquisition of:
- Habitual residence.
- Buildings associated with economic activities performed by entrepreneurs and professionals.
- Homes other than the habitual residence which the landlord is letting and for which he/she has ceased to receive rent since the entry into force of the State of Alarm decreed by Royal Decree nº 463/2020 of 14 March, or ceases to receive it until one month after the termination of the State of Alarm.
These same measures also apply to the applicant’s guarantors and sureties with regard to their habitual residence and in the same conditions.
In the case of non-mortgage credits or loans, the assistance is addressed solely to individual persons who are in a situation of economic vulnerability due to the Covid-19 sanitary crisis.
These same measures also apply to the principal debtor’s guarantors and sureties if they are also in a situation of vulnerability. The guarantors and sureties may demand that the creditor first exhaust the principal debtor’s assets before claiming the guaranteed debt from them.
The addressees have to comply with each and every one of the following requirements:
- Having become unemployed, or in the case of entrepreneurs, self-employed workers or professionals, having suffered a substantial loss of income or a substantial reduction of invoicing of at least 40%.
- That the total income of the family unit of which the applicant forms part in the month prior to submitting the application for moratorium does not exceed:
- 3 times the monthly IPREM (Public Multiple-Effect Income Indicator):
- For each dependent child, this limit will be increased by 0.1 times the IPREM, or in the case of single-parent family units it will be increased by 0.15 times the IPREM per child.
- For each member of the family unit over 65 years of age, the value will be increased by 0.1 times the IPREM.
- 4 times the IPREM if one or more members of the family unit is certified a degree of disability greater than 33% or is in a situation of dependence or illness which permanently disables them from any work activity.
- This limit will be increased by 0.1 times the IPREM for each dependent child, or in the case of single-parent family units by 0.15 times the IPREM per child.
- 5 times the IPREM if the applicant suffers from cerebral palsy, mental illness or intellectual disability, with a recognised degree of disability equal to or greater than 33%; is a person with physical or sensorial disability, with a recognised degree of disability equal to or greater than 65%; or suffers from a serious illness which in a certified manner disables that person or their carer from performing a work activity. (More information in the table).
- 3 times the monthly IPREM (Public Multiple-Effect Income Indicator):
Reference: 1 monthly IPREM
3 monthly IPREM
4 monthly IPREM
5 monthly IPREM
- That the total of the mortgage or non-mortgage loan, the expenses and basic supplies of the family unit’s habitual residence is equal to or greater than 35% of the net family income. Expenses and basic supplies are understood to be electricity, gas, heating oil, running water, landline and mobile telecommunication services and community fees.
- That as a consequence of the sanitary emergency the family unit has suffered a significant alteration of its economic circumstances in terms of effort of access to housing.
- In the case of mortgage credits or loans, that the sum total of the mortgage instalments of the property has been multiplied by at least 1.3.
- In the case of non-mortgage credits or loans, that the burden of the loan on the family income has been multiplied by at least 1.3.
If an individual person with a non-mortgage credit or loan is also a beneficiary of the mortgage moratorium, their application will not be taken into account in calculating the expenses referred to in points c) and d).
If an individual person with a non-mortgage credit or loan has to assume another periodical payment (rental of accommodation and/or other types of financing towards a financial institution), the calculation of points c) and d) will be carried out in the same way as for a mortgage loan, but substituting the amount of the mortgage instalment with the sum total of the periodical payments, including the rental, even if it is subject to moratorium.
The application must be submitted online or in person to the financial institution with which the mortgage or non-mortgage loan or credit was signed. The website of each institution contains a specific form which must be presented along with the following documentation:
- Certification of loss of income:
- Certificate of unemployment benefit, with the monthly amount.
- In the case of being an entrepreneur or professional and having ceased the activity, the applicant must submit the certificate of declaration of cease of activity issued by the Inland Revenue Agency (AEAT) or the competent body of the Autonomous Community.
- Certification of persons living in the home:
- Family register or certifying document of civil partnership.
- Collective municipal registration certificate (minimum 6 months). You can carry out this formality by calling 010.
- Declaration of disability, dependence or permanent incapacity for work activity, if applicable.
- Certification of ownership of the property:
- Simple note from the index service of the Land Registry of all the members of the family unit. The request for the simple note for certifying the situation of unforeseen social and economic vulnerability can be sent by e-mail to the Land Registry in which your home is registered or, as the case may be, to any of the Registries of the municipality where you have your habitual residence.
- Deeds of sale of the habitual residence, the rented home or the building associated with the economic activity, if this is the case.
- In the case of mortgage credits or loans, the granting deed of the mortgage loan or credit must also be submitted.
- In the case of non-mortgage credits or loans, it is also necessary to submit the non-mortgage loan or credit agreement signed with the financial institution and the granting deed of the mortgage loan or credit, if this is the case.
- For mortgage credits or loans and, if the mortgaged home is in a rent situation, the rent agreement must be attached.
- Sworn declaration by the debtors that they comply with the requirements.
In the event that the applicant is unable to provide one of the documents, this must be justified by means of a sworn declaration stating the reasons related with the consequences of the Covid-19 crisis. Once the State of Alarm and any extensions of it have terminated, the applicant will have one month to submit the documents which have not been provided.
- In the case of mortgage credits or loans, this application is closed since 9 May 2021.
It will take effect from the moment the application is submitted accompanied by documentation proving the debtor's vulnerability.
- In the case of non-mortgage credits or loans, the application is closed since 9 May 2021. Once the application for suspension has been submitted and the situation of economic vulnerability has been verified, the creditor will proceed to the automatic suspension and will have to report it to the Bank of Spain.
In order for the suspension to be implemented, no written agreement or modification of the agreement will be required. However, if the credit or loan is guaranteed by means of a registrable right other than the mortgage, it is necessary to register the extension of the period of the suspension.
If you have any query, you can call 010. For any assistance, you can send an e-mail to your district’s housing office.
You can also find more information on the type of assistance in the FAQs section.