Documents for obtaining a mortgage loan moratorium

The Spanish government has approved a package of financial aid to combat the crisis that has arisen due to coronavirus. One of the measures taken is a moratorium on mortgage payments. However, not everything is so ideal, not everyone will be able to qualify for this moratorium. What documents do I need to submit to the bank to get a mortgage moratorium?

Place ofResidence

First, the moratorium is only available for mortgages for the purchase of a conventional residence. This does not include sole proprietors or small business owners who are paying off a mortgage on a purchased premises (such as their office).

This moratorium will be in place for the next month, according to the royal decree. It is during this period that the necessary documents have to be filed. However, presumably this period will be extended and oriented to the duration of the state of emergency in Spain.

Banks are willing to cooperate and are in favor of exempting the most vulnerable families from mortgage payments. Although they warn that under current legislation they will have to review overdue loans in three months’ time and take appropriate action.

Banks are willing to cooperate and advocate for the most vulnerable families to be exempted from mortgage payments.

Groups of “affected”

To qualify for this assistance, an “affected” person must meet all four points (one is not enough):

• “Affected” person is unemployed or a loss of more than 40% of sales, in the case of self-employed individuals who are not salaried employees.
• The mortgage payment plus basic expenses and utility bill expenses is 35% or more of the net income received by all family members.
• As a result of a health emergency, the family has suffered a significant financial loss and ability to pay for housing. This means that the mortgage payment burden relative to the family’s total budget has increased by a minimum of 1.3 times. Or in the case of sole proprietors, that sales volume has decreased significantly (by at least 40%).
• The total income of the family members does not exceed the income of the previous month before the moratorium was requested.

Submission of documents

Bank offices are still open to the public. However, to avoid large number of people moving on the streets these days, they are offering remote services to customers.

To qualify for a mortgage loan moratorium, a “victim” of the coronavirus must apply to a financial institution and submit the following documents:

• If you have lost your job, you must submit a certificate issued by your benefits management organization. It must show the monthly amount you received as unemployment benefits.
• An unemployment certificate must be submitted.
• In case a citizen had to close his business, he must present a certificate of termination. This is issued by the State Agency for Tax Administration (la Agencia Estatal de la Administración Tributaria). Or any other competent authority of the CCAA.
• Family book or document proving family ties to prove the number of people living in the same house. It is also necessary to show a certificate of residence and a statement of disability or addiction that disables the ability to perform work activities.
• Family book or document proving family ties to prove the number of people living in the same house.
• To show ownership of the house, it is necessary to show the entry in the property registry (nota simple del registro de la Propiedad), the deed of sale of the house (la escritura de compraventa) and the mortgage loan (préstamo hipotecario). as well as a statement from the debtor regarding the fulfillment of the requirements to which his case corresponds.

The granting of a moratorium entails the suspension of payments on the mortgage loan for the period stipulated for it (no specific period is defined). The early repayment clause specified in the mortgage deeds will also not apply.

The moratorium will not apply.
We continue to monitor the news on a daily basis and will notify you of new regulations and laws. Follow our updates here or on our Facebook page!

With respect, wishes for health and peace,

Anna Lioubavina and the team at Broadway Consulting Corporation SL