The Congress of Deputies approved a package of measures agreed upon by the Government and the financial sector to ease the burden on families hardest hit by rising mortgage payments. The changes reinforce what was already known as Good Practices, adopted in 2012, with the aim of stopping evictions after the crisis and, above all, expanding eligibility to include middle-income households.
A pre-ascension development shows the euríbor continuing to climb. It moved from -0.477% last year to 2.629% in October, marking more than a thousand percent rise in cost. For an average mortgage in the province, where loan amounts typically run around 105,000 euros, this translates to about 163 euros more per month, or roughly 1,958 euros per year.
Many family budgets are being stretched, according to data presented by the Vice President of Economic Affairs. Nadia Kalviño indicated that around 70.5% of loans currently issued in Spain for home purchases carry a variable rate.
The package creates a temporary framework for middle-class families at risk of vulnerability while expanding protections for those already benefiting from the existing Good Practice Principles, which currently cover about 350,000 families nationwide. With the new measures, total beneficiaries could reach around 1.1 million mortgages across the country. In Alicante, INE data show that these measures focus on 4.2% of all mortgages issued in Spain over the past decade, suggesting the province could see benefits for roughly 46,000 families.
The following notes highlight how the agreement could affect mortgage holders, including vulnerable households and middle-class families in different circumstances.
Sensitive group protections
For the first group, vulnerable families earning less than 25,200 euros annually—approximately three times the IPREM rate—whose mortgage payments have risen by at least 50% and consume more than half of their income, a five-year grace period is possible. During this grace period, the interest rate can drop from Euribor plus 0.25% to Euribor minus 0.10%. Borrowers may also request a debt restructuring and may extend the grace period to two years if payments remain unaffordable.
Households that do not meet the 50% payment increase criterion may still receive a two-year grace period, an interest rate reduction, and an extension of the repayment term up to seven years.
Middle-class protections
New measures target families with disabilities and those paying high mortgage costs. For rent recipients earning up to 29,400 euros with a minimum 20% payment increase and housing costs exceeding 30% of income, options include a one-year quota extension, an interest-rate reduction for the same period, and a seven-year payoff extension. Additionally, for those facing a mortgage expiring within the next year, early payment commissions will be eliminated, and a transition from fixed to variable rate will be offered to reduce monthly installments where feasible.
Impact on how mortgages are managed
Following approval by the Council of Ministers and consensus with major sector employers, banks will voluntarily participate in these measures. Once agreed, financial institutions will implement them and inform customers within one month about the possibility of requesting relief.
Leading banks such as Sabadell, Santander, BBVA, and CaixaBank have expressed willingness to sign the agreement.
Consumer associations’ view
Major consumer groups specializing in financial matters welcomed the package as a relief for many mortgage holders, while cautioning about potential long-term costs or higher payments in some scenarios, such as an extended repayment period.
Both organizations expect more families to benefit as the measures aim to temporarily reduce monthly payments by increasing income thresholds to cover middle-class households.
Comparing fixed and variable mortgages
Adicae notes that extending the repayment term can delay the inevitable payoff, even if it provides short-term relief by lowering monthly fees. Their calculations suggest that a borrower paying around 620 euros monthly who extends repayment by seven years could save about 100 euros per month but would pay approximately 12,400 euros more over the life of the loan. Asufin argues that removing commissions for switching from variable to fixed rates may no longer offset higher rates charged on these loans.
In addition, the Financial Client Defense Authority was approved, intended to handle complaints from consumers in banking, insurance, and investment sectors. If a claim concerns conduct and customer protection and is below 20,000 euros, decisions by this authority would be binding on the organizations involved, addressing issues previously handled by courts in relation to abusive practices.