Banks paused a plan designed to help households facing mortgage payment problems after weeks of intense negotiations that began in November. The chair of the banking employers association, AEB, insisted that fulfilling the agreement is essential and that talking about changes should not create ambiguity or undermine expectations about payment culture. He emphasized that any alterations must not introduce uncertainty while making clear that the agreement was reached with specific conditions and thresholds in mind.
For several weeks the industry has watched with a mix of caution and expectation. With elections on the horizon and housing a central political topic, there is broad interest in whether the executive might seek to renegotiate the deal. After a March meeting between Vice President Nadia Calviño and bank employers, the Ministry of Economy stated that in June there will be an assessment of possible improvements to the Code of Good Practice for mortgage assistance and, in particular, a review of the beneficiary economic conditions and the thresholds that define eligibility. United We Can also signaled that it is considering removing the transition from variable to fixed mortgage rates within the year.
Following the signing, the government estimated that the plan could help more than a million families. While this figure is indicative rather than definitive, initial participation numbers were higher than anticipated, with a large volume of inquiries: about 15,000 information requests and 9,000 requests for support. The spokesperson urged patience, noting that mortgages are typically reviewed annually and that the system involves a considerable group of borrowers. There has not yet been a noticeable rise in reference rates on loans, suggesting that the plan remains within controlled levels.
june coming soon
The signing occurred at a moment when policymakers could anticipate potential challenges. The impact of interest rate hikes on monthly payments will unfold gradually through the year. June may mark the beginning of a more revealing period, with data expected to signal how the code might evolve and what changes the officials will discuss alongside Vice President Calviño at the upcoming official meeting. Market participants and observers are watching closely for any signals that the plan will adjust to changing economic conditions.
Kindelán, a leading figure in the banking employers circle, recalled that the November pact emerged from an intensive negotiation process approved by both the government and Congress with broad support. The aim is to strike a balance that provides liquidity relief for families while protecting the mortgage portfolios that underpin the financial system. In Spain more than 75 percent of families own a home, making these policies particularly consequential. The authorities stressed that implementing measures must avoid creating risks that could trigger a crisis in the medium term, and emphasized the need to uphold fair provisions and timely payment arrangements that the industry currently requires to safeguard the health of the portfolio and payment culture.
The head of the traditional banks employers association called for greater cooperation from local governments to implement the plan in neglected municipalities. He suggested practical steps such as creating access points and physical spaces to support financial services, including the installation of automatic teller machines. He noted ongoing cooperation with CECA, the former savings banks employers association, and Redsys on private label ATM installation efforts. The emphasis remains on extending services to all sectors and ensuring that vulnerable communities are not left behind in the financial system.