Government proposes extension of terms and shortfalls for mid-range mortgages

In an interview with RNE, Nadia Calviño, vice president of economy, confirmed this Thursday that the Government is working with the industry. “two ways of working” for “two types of families”, as this newspaper advances on Tuesday. On the one hand, it aims to “improve operation” and “smooth” the 2012 Good Practices Act on mortgage restructuring for vulnerable families. At risk of vulnerability”. That is, those who say, “Their financial situation is greatly affected not by the loss of their jobs or the lack of a minimum livelihood, but by the rapid rise in reference interest rates.”

The government wants banks to make some offers to this group. “more affordable” mortgage installments, but without that “increase in financial costs”. The key point here is that extended maturity and shortfalls reduce the monthly payments that families have to pay, but assume an increase in the final price of mortgages unless otherwise regulated. Therefore, after the grace period ends, the loan must be renewed with the resulting commission (normally 1% of the outstanding capital), while more interest is paid as it has the longest maturity or the highest outstanding capital.

According to sources, the economy does not look down on the bank’s proposal. Extending periods by five years up to a maximum of 40, however, wants to go further in terms of additional measures and the requirements that middle-class families must meet who can benefit from them. The employers’ associations AEB (banks) and CECA (former savings banks) have proposed requirements that are only slightly more flexible than the requirements of the 2012 law, but the ministry finds them too restrictive, both in this situation and in vulnerable families.

Approval stages

The idea at the negotiating table is that measures for the middle classes are articulated through a framework of action. organizations agree to comply, as they did in their plan to improve care for the elderly last spring and their plan to bring physical financial services to rural Spain a few weeks ago. On the other hand, the Principles of Good Practice, which will be reformed as in 2013, 2015, 2017 and 2019, have a regulatory nature and are therefore mandatory for their voluntary affiliates.

The government hopes to reach an agreement next week, but it will then have to go through the Cabinet (the 2012 Act was approved by Royal Decree). Organizations, from their point of view, it’s time to adapt your procedures and systems and implement measures. According to the sources, the faster progress of the negotiations is not due to the fact that the parties have detected a large wave of payment problems recently, but because they want to present a scenario of certainty and calm to the mortgagee as soon as possible. possible.

Almost daily meetings

Calviño certainly made sure that his department kept going. meetings with the bank “almost daily” and hope to reach an agreement “in the next few days”. He also assured that the ‘tax’ on banks promoted by the government did not hinder the negotiations: “No one can escape the fact that they are not happy and defend their interests, and this should be understood. But we have a constructive approach. Obviously, they are the first to be concerned with citizens continuing to pay their mortgages”.

Contrary to what Pedro Sánchez did last Friday, the vice president avoided blaming Luis de Guindos, vice president of the European Central Bank (ECB) and former PP minister, for the monetary authority’s latest report questioning the ‘tax’. “What the ECB did, not only in Spain, but in any country, the issues that need to be examined in this type of tax were discussed. They even made much harder and stricter reports than other countries. We have already taken these aspects into account and I think there is no room for more.” , he relativized.