The current pandemic has brought a lot of disruption in the lives of people across the planet, and it seems that Spain was amongst the countries that had the worst impact.
Leading Europe with the most number of infections, the economic impact on both the livelihoods of people as well as their private and personal lives were tremendously affected. According to the National Statistics Institute (INE), around a million people lost their jobs due to coronavirus.
According to the current and live report by Worldometers, as of August 24, Spain has a total of more than 400,000 cases with over 28,000 deaths. Furthermore, on August 11, Spain was again hit hard when total daily reported cases hit over 6,000 people.
People’s lives are in distraught, which is why the Spanish Government has stepped up and frozen mortgage payments.
Let’s find out more about this Spanish Mortgage Relief that has been offered to people during the current turbulent times.
Everything You Need To Know About Spanish Mortgage Relief
Read on to know more about the Spanish Mortgage Funds for COVID-19 victims:
1. Who Qualify & Who Don’t?
It should be understood that the recent moratorium on mortgage repayments are for Spanish residents only who have mortgages with Spanish lenders. Furthermore, it is only applicable for those people who have lost their jobs or suffered from a sharp decrease of income as a result of COVID-19, plus that they are finding it extremely hard to make the repayments.
Hence for someone who doesn’t live in Spain permanently or the mortgage of choice is for a second home that serves the role for a holiday rental or vacation spot then you wouldn’t qualify for the moratorium.
This is further outline under the state of emergency measures as published in the official state bulletin on March 17 as it was outlined and approved by the royal decree.
2. The Initiative by the Spanish Government
The Spanish Government so far has come to realize the terrible deterioration that is being caused by the current pandemic and how adversely it is corroding away everything they value and uphold. Around eight pieces of legislation have been passed so far to deal with the situation created by the current pandemic.
This goes to show that the Spanish Government has come to terms with how serious the situation is and is ready to provide measures that can help its people and the nation address concerns and issues related to the coronavirus.
The legislation included measures that address health and economy at large, greatly emphasizing the tourism industry, SMEs (small & medium enterprises), the self-employed, and individuals affected by containment measures.
3. Some Basic Requirements
In order to avail the Spanish Mortgage Relief program, there are basically four conditions that have to be met.
- Firstly you need to prove with credible sources that you either lost your job or observed a drastic cut in income which must be at least 40% resulting from coronavirus crisis.
- Secondly, you will also be required to provide documentation as supporting evidence regarding your aggregate earning prior to the month you apply for relief such that it did not exceed three times the IPREM household income reference. This means that your total family income must have been below €1,613.52 in February to qualify.
- Thirdly your mortgage repayment along with your basic expenses as well as monthly utility cost should comprise at least 35% of your net household income.
- Lastly, your mortgage repayment as a percentage of your reduced household income must have multiplied by at least 1.3 in order to qualify for the moratorium.
4. Special Cases
It is important to note here that those who qualify for the interest-free mortgage repayment deferral understand that this support by the Government would be offered throughout the duration of the state of emergency and can be further extended to 15 additional days after the decree has officially expired. Hence the last date to apply for this relief was May 3 this year.
The royal decree was approved on March 17 with an economical worth measuring €200 billion and equivalent to 20% of Spanish GDP. Those who are non-residents or somehow fail to qualify for the relief should immediately contact professionals to seek further assistance.
In the case of people who suffer from a disability, then their disability certificate should also be presented to quicken the process.
5. How To Apply?
In order to apply for the relief, you need to contact your mortgage lender with viable proof as mentioned in the royal decree.
This will include your Nota simple, which is a property registration document along with your Libro de Familia, which is your family register. Plus you would also be required to submit Empadronamiento Certificates for all those who are dependent on you and live with you.
This is an official register that contains information about basically where you live. It is also known as Padron Municipal de Habitantes. Furthermore, your supporting documents will also include the deed of sale, mortgage deeds, the debtor’s declaration of responsibility, and compliance requirements.
6. Seeking Advice & Help
As life in Spain is increasingly becoming challenging there is bound to be a lot of ongoing confusion and frustration. The important thing to do is not take any harsh decisions that can make matters worse than they already are at the moment. It is best that you seek help and advice from reputable sources in matters concerning your mortgage relief plans.
The impact of the coronavirus on Spanish soil has been immense. With the loss of life also comes a hefty blow to the economy with people losing out on their basic means of employment. Certainly, those who live their lives from one paycheck to another are suffering the most.
Hence the Spanish Government has taken the initiative to provide relief to Spanish residents and stop their people from falling into depravity.
For more questions regarding the topic, please share your feedback by leaving a mention in the comment section below.
Samantha Kaylee currently works as an Assistant Editor at Crowd Writer, a perfect place for students to acquire the best essay writing service at genuinely low prices. During her free time, she likes to practice mindful yoga indoors to manage stress and keep herself active.