The next December 31 the possibility of requesting a change of variable to fixed rate mortgage or mixed or apply refunds or early repayments without the usual collection of commissions.
This is a measure that accompanied the Code of Good Practices for mortgage debtors at risk of vulnerability that the Government agreed upon and approved with the banks in November 2022 to alleviate the effect of the rapid rise of official rates applied by the European Central Bank (ECB) in the face of high inflation within the eurozone.
Initially, the measure – which applies to all clients, regardless of whether they can be included in the code or not – was designed for a duration of one yearuntil December 31, 2023, although shortly before the end of last year, the Executive expanded the scope until 2024 due to the impact of the war in Ukraine, the Middle East and the drought.
However, given the relaxation of the rates that the ECB has applied since June and the subsequent drop in the Euribor (which is currently at 2.4%), this is a measure that the Government has decided not to extend.
Therefore, neither a novation – changing the conditions of the loan – nor a subrogation – changing the entity where the mortgage is held – can no longer be applied to modify the applied rate and change it from a variable one to a fixed or mixed one without charging commissions. , as also do not apply refunds or early repayments without expense.
Extension of the code of good practices
On the other hand, the Government has extended the Code of Good Practices (until November 2025) for mortgage debtors at risk of vulnerability in 12 months, for all clients with incomes of up to 38,000 euros and another 18 months (until May 2026) for those affected by the DANA. The Code of Good Practices for vulnerable debtors, which has been in force since 2012, is also maintained.
Mortgage debtors who meet the requirements established by the Code – among them, having an income of up to 4.5 times the Iprem – may carry out a novation and opt good for extending the total term of your loan up to a maximum of seven years or by conversion of the loan from a variable rate to a fixed rate. In this case, this novation would not entail the charging of commissions.
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