How to request a mortgage payment holiday
Eligibility to request a mortgage payment holiday
- The first thing to consider is whether you're considered to be "at-risk", and therefore financially vulnerable. According to the decree-law, the factors which indicate financial vulnerability include a loss of employment or a significant drop in income of 40% or more for the self-employed.
- Additionally, the household's income in the month before the payment holiday is requested must not have been more than three times the IPREM ("Indicador Público de Renta de Efectos Múltiples"), Spain's reference index for determining social benefit. This currently stands at €537.84 a month, so the household income must be less than €1,613.52.
- The mortgage payment, plus basic living expenses and bills, must be greater than or equal to 35% of the household's net income.
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Filing the request
Time limit for granting the request
Required paperwork
- Unemployed: certificate issued by the relevant social security administration agency showing the amount received in unemployment allowances or benefits.
- Cessation of business activity: certificate from the Spanish Tax Agency ("Agencia Estatal de la Administración Tributaria") confirming the cessation of business activity.
- Family record book ("libro de familia")
- Certificate of registration at the local town hall ("certificado de empadronamiento") of the people registered as living at the address. These residents must have been registered as living there for at least the previous 6 months.
- Statement of disability, dependency or incapacity, if applicable.
- Deed of purchase of the property and proof of granting of the loan or mortgage
- Non-certified land registry extract ("nota simple") for all members of the household.
Banking basics
Banking jargon can be confusing—but it doesn't have to be. Find simple explanations to popular banking terms.
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