Has your purchasing power slipped every month because of a variable interest rate on your mortgage? The rise in rates, driven by changes in the ECB’s policy, means payments can grow even when take‑home pay stays the same. Variable-rate mortgages often lead to higher monthly outlays, and the increases can feel exponential as reference rates like Euribor move.
There is no cause for panic. The Bank of Spain, the authority that supervises Spain’s banking system and financial institutions, recently issued guidance that could help homeowners in this situation. The ECB has also highlighted the relevance of Royal Decree 19/2022, enacted by Parliament, which introduced a set of measures designed to cushion households from the impact of rising costs and higher interest rates through fiscal policy actions.
In practical terms, homeowners with variable-rate mortgages may qualify for relief under the provisions of this decree, provided they meet several criteria.
What do you need to claim relief if you have a variable mortgage?
Various conditions govern eligibility for the relief measures outlined in the decree.
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First, the financed home must be a primary residence and not a second home, with a value below 300,000 euros.
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Second, income thresholds apply: families with an annual income under 29,400 euros may apply.
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The mortgage burden must exceed 30% of income.
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The mortgage must have risen by at least 20% due to higher interest rates.
What if you don’t meet any of the requirements?
There are still options. Homeowners may request a 12‑month freeze on mortgage payments or convert a variable rate to a fixed rate, which could extend the loan term by up to seven years. These steps help reduce immediate payments and provide more predictable budgeting.
Additionally, if the family’s annual income is below 25,200 euros and the monthly mortgage exceeds 50% of that income, a two‑year grace period can be requested. This can extend the mortgage maturity by up to seven years while potentially lowering the interest rate for the period of relief.
All of these measures are designed to give families breathing room while the financial landscape stabilizes. Beneficiaries should review the exact terms of the decree and consult with their lender or a financial advisor to confirm eligibility and the precise impact on their loan schedule. [Source: Bank of Spain; Royal Decree 19/2022; European Central Bank communications]