- Measures to prevent evictions have benefited more than 70,000 families at risk of social exclusion
- In the last semester, 4,000 more applications have been registered than in the last six months of 2015
In the four and a half years that the Code of Good Practices (CBP) has been in force, a total of 40,446 families have used it to alleviate their mortgage burden. Of these, 33,765 have obtained a restructuring of their debt and 6,674, the payment in payment. In the first semester of 2016, the families benefited by CBP amounted to 9,507, 30.2% more than in the previous semester, according to information sent yesterday to Congress by the CBP Control Commission. This information is contained in the VIII report on compliance with the CBP, which obeys the mandate of Royal Decree Law 6/2012 on urgent measures for the protection of mortgage debtors.
The CBP, together with the Social Housing Fund (FSV) and the suspension of mortgage launches, is part of the package of measures promoted by the Executive since the beginning of the X Legislature with the aim of facing the problem of evictions. In total, 70,096 families have benefited from these measures aimed at groups at risk of exclusion: 40,446 to CBP, the FSV has allowed the conclusion of 6,800 rental contracts at reduced prices and 22,850 launches have been suspended until September through the moratorium mortgage.
According to the information on CBP sent to Congress, in the first six months of 2016, 4,000 more applications were registered compared to the previous semester, up to a total of 17,306. The average rate of loans to applicant families was 2.85% and the average loan life of just over 22 years. A quarter of the applications received had a debt of less than 50,000 euros. Of the 16,276 applications whose processing concluded in the first half of 2016, 9,507 were accepted and 5,437 were rejected for not meeting the requirements.
The CBP was signed in March 2012 with practically all the entities with mortgage activity in Spain, up to 94 today. The Government promoted this Code of voluntary adherence but of mandatory compliance for two years for the signatory entities. The objective is to provide solutions to families with difficulties in facing the payment of their mortgage debts, either because they are unemployed or without income. Three options were established, renegotiation of terms and installments with the entities or debt restructuring, withdrawals and payment in kind, with grace periods, amortization up to 40 years, reduction of the interest rate applicable to Euríbor + 0.25 points and even the possibility of staying in the house by paying a reduced rent.
The mortgage debtors included in the scope of protection of the Royal Decree-law are the holders of loans or credits with a mortgage guarantee, who encounter difficulties in coping with the payments of their loans, since the members of their family unit do not they have income derived from work or economic activities and the fees to be paid exceed 50% or 40% of their income. The Royal Decree-Law foresees that they can request a restructuring of their debt, a reduction of the same so as to reduce the amount of their installments or, ultimately, deliver the house, canceling the debt.