Can I apply for a mortgage holiday on my Spanish property?

Over the last week, I have been asked by several clients whether they would be able to take a mortgage holiday on their mortgage on their Spanish property.

WHAT IS A MORTGAGE PAYMENT HOLIDAY?

A mortgage payment holiday is where your mortgage payments are paused for a set period.  In the UK mortgage payment holidays, are available to all homeowners who are up to date on their mortgage payments. They are also available to UK Buy to Let landlords, whose tenants have been financially affected by the coronavirus crisis. Landlords are expected to pass on this relief to their tenants.

HOW DO MORTGAGE PAYMENT HOLIDAYS WORK?

In light of the COVID 19 crisis in Spain, the Spanish government adopted several measures to protect those who have a mortgage on their home who are experiencing severe financial difficulty due to the economic circumstances, that have occurred as a direct result of the epidemic. Those who request the mortgage holiday must meet certain criteria.  It must be a mortgage holiday on their main residence.  This automatically excludes those clients who have a mortgage on their second residence/holiday home in Spain. To qualify you must have become unemployed or, in the case of being self-employed or company owner, income must have significantly dropped due to the crisis.

DO I QUALIFY?

The criteria to qualify is complicated and a list of documents must be supplied and presented to your bank. If agreed, the mortgage holiday must be inscribed in the land registry. The period for the mortgage holiday will be an initial period of three months, with a possibility to extend depending on circumstances.

WHAT ABOUT NON RESIDENTS?

For non-residents, some of the banks are offering the possibility of applying for an interest-free loan for 3-6 months, to assist with cashflow. However, you would have to prove that you are now unemployed and/or your income has significantly dropped.

If you have any issues with your mortgage provider and need some guidance as to what help is available, do not hesitate to get in touch and we will do our best to help at this difficult time.

Stay Safe!

Alison