Who can request it?
According to Royal Decree-Law 8/2020, of March 17 and Royal Decree-Law 11/2020, of March 31, clients with mortgage loans for the acquisition of their habitual home in a situation of economic vulnerability who meet the following conditions can request the moratorium:
The holders are:
- Workers who have become unemployed.
- Entrepreneurs or professionals who suffer a substantial loss of income or sales, in the latter case of at least 40%.
The family unit, whose income of all its members does not exceed, in the month prior to the request for the moratorium, in general:
- The limit of three times the monthly Public Indicator of Multiple Effects Income (IPREM), which for the year 2020 is set at €537.84 per month. This limit will be increased by 0.1 times the IPREM for each dependent child in the family unit.
- This figure may be increased for single-parent families or if the family unit has dependants over 65 years of age or people with disabilities of over 33%.
The mortgage payment, plus basic expenses and supplies, must be greater than or equal to 35 percent of the net income of all the members of the family unit
The family unit must have suffered a significant alteration in its economic circumstances as a result of the health emergency. That is, when the mortgage burden on family income has been multiplied by at least 1.3.
When can you apply?
From 19 March up to 29/09/2020.
How can I tell whether I meet the requirements of the moratorium of the Royal Decree?
Use our simulator: you can quickly and easily check whether you meet the conditions to request the moratorium. The simulator is informative and not binding.
What documentation must be provided to make the request?
In case of unemployment, certificate issued by the entity managing the benefits, showing the monthly amount received for unemployment.
In the case of cessation of activity of self-employed workers, a certificate issued by the State Agency for Tax Administration (or competent body) on the declaration of cessation of activity.
- Family book or document confirming a domestic partnership.
- Certificate of registration of residents in the home, with reference to the time of presentation of the supporting documents and to the previous six months.
- Declaration of disability, dependency or permanent incapacity to carry out a work activity.
Ownership of the assets:
- Simple statement from the property registry index service for all members of the family unit.
- Deeds of sale of the habitual residence, the rental dwelling or the property affected by economic activity and the granting of the credit or loans with a mortgage guarantee.
In the case of requesting the moratorium on the mortgage loan of a rental property, you must provide
the corresponding lease.
Sworn statement by the client on the fulfilment of the requirements to be considered as lacking sufficient economic resources according to this royal decree-law.
What happens when you are granted the mortgage moratorium?
- You will not have to pay your mortgage instalments, or any of its components (amortization of the capital or payment of interest), during the three months that the moratorium lasts.
- The maturity date of your mortgage changes due to the temporary suspension, but there will be no further modifications in the rest of the conditions agreed in the contract. The agreement to extend the maturity date must be formalised in a public deed and registered in the property registry.
How to apply
Submit the application through your branch or manager, along with the documentation detailed above. We will review everything and notify you of the approval or denial of the request.
See Royal Decree-Law 8/2020, of March 17, extraordinary and urgent measures to face the economic and social impact of COVID-19 and Royal Decree-Law 11/2020, of March 31, for further information.
