Bank of Spain delays mortgage relief decision
ECONOMY & POLICY

Bank of Spain delays mortgage relief decision

Bank of Spain Governor Pablo Hernandez de Cos expressed his view that, currently, there seems to be no necessity for banks to potentially prolong mortgage relief measures for vulnerable households, given the limited utilisation by citizens thus far.

Last week, Prime Minister Pedro Sanchez of Spain announced that the new coalition government was considering raising the annual income threshold for qualifying for mortgage relief support to 38,000 euros ($41,283) as part of a broader set of measures aimed at assisting families in coping with increased borrowing costs.

Speaking at a financial event in Madrid, De Cos stated, "In this central scenario, where the economy is still slowing down but could see a recovery in 2024, we find no need to amend the code of good practice."

As per the updated industry-wide code of good practice, Spanish banks are now expected to offer mortgage support to vulnerable families earning less than 25,200 euros per year. Additionally, middle-class families with an income of less than 29,400 euros, at risk of defaulting, would also receive extra protection.

Approximately three-quarters of the Spanish population own homes, making them particularly vulnerable to an increase in interest rates, as over 70% of their more than 4 million outstanding mortgage loans carry variable rates.

The average cost of a mortgage in Spain rose to 3.84% as of August, compared to 2.03% in the same month in 2022.

In November 2022, the Spanish government approved mortgage relief support for over one million vulnerable households. However, as of the first seven months of 2023, only 42,000 requests have been submitted, according to data from the Bank of Spain.

De Cos noted, "We have observed that the use is still limited, and our assessment of this fact is that the economy has been performing reasonably well. We have all been surprised by the strength of the labour market."

Bank of Spain Governor Pablo Hernandez de Cos expressed his view that, currently, there seems to be no necessity for banks to potentially prolong mortgage relief measures for vulnerable households, given the limited utilisation by citizens thus far. Last week, Prime Minister Pedro Sanchez of Spain announced that the new coalition government was considering raising the annual income threshold for qualifying for mortgage relief support to 38,000 euros ($41,283) as part of a broader set of measures aimed at assisting families in coping with increased borrowing costs. Speaking at a financial event in Madrid, De Cos stated, In this central scenario, where the economy is still slowing down but could see a recovery in 2024, we find no need to amend the code of good practice. As per the updated industry-wide code of good practice, Spanish banks are now expected to offer mortgage support to vulnerable families earning less than 25,200 euros per year. Additionally, middle-class families with an income of less than 29,400 euros, at risk of defaulting, would also receive extra protection. Approximately three-quarters of the Spanish population own homes, making them particularly vulnerable to an increase in interest rates, as over 70% of their more than 4 million outstanding mortgage loans carry variable rates. The average cost of a mortgage in Spain rose to 3.84% as of August, compared to 2.03% in the same month in 2022. In November 2022, the Spanish government approved mortgage relief support for over one million vulnerable households. However, as of the first seven months of 2023, only 42,000 requests have been submitted, according to data from the Bank of Spain. De Cos noted, We have observed that the use is still limited, and our assessment of this fact is that the economy has been performing reasonably well. We have all been surprised by the strength of the labour market.

Next Story
Infrastructure Urban

AI Data Centre Leaders Map India’s Infrastructure Roadmap

Mumbai, 22 July 2026: As artificial intelligence reshapes global digital infrastructure, industry leaders gathered in Mumbai today at the AI-Powered Data Centre Conference 2026 to discuss how India can build the capacity, technology and ecosystem required to emerge as a global AI infrastructure hub. Organised by ASAPP Info Global Group and conceptualised by FIRST Construction Council, the conference revolved around the theme, “From Capacity Gap to AI Superpower: Building India's Digital Backbone for the Intelligence Economy.” Bringing together developers, technology providers, enterpr..

Next Story
Infrastructure Urban

SCLR Extension Nears Completion Linking BKC With Signal-Free Route

The Santacruz-Chembur Link Road (SCLR) extension towards Bandra-Kurla Complex (BKC) via the Mumbai University campus has entered its final stage, bringing motorists closer to a direct, signal-free connection between the Western Express Highway and the city’s commercial district. The elevated connector is being built as an arm from the SCLR alignment and will link the western suburbs with BKC without surface signals. The link is designed to reduce journey times for commuters travelling from the western suburbs to BKC and to improve access to eastern Mumbai. By carrying through traffic above s..

Next Story
Infrastructure Transport

Raiganj MP Seeks Bengal Only Highway Link To Siliguri

Raiganj Member of Parliament Kartik Chandra Paul met Union Minister for Road Transport and Highways Nitin Gadkari in New Delhi to press for a new stretch of national highway in North Dinajpur district. He urged approval for a Bengal-to-Bengal link that would connect National Highways 12 and 27 to allow vehicles bound for Siliguri to avoid the current route through Kishanganj in neighbouring Bihar. He also submitted a proposed alignment of the new road to the ministry for consideration. At present vehicles from Raiganj travel along NH-12 and join NH-27 at Purnia More in Dalkhola, a route that p..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement