PSOE and Sumar This week they presented all the economic measures that will extend until 2024 with the aim of softening the monetary and social consequences of the Ukrainian War. Among them are the free public transport, the reduction of VAT on certain foods or the extension of mortgage aids. Regarding the latter, the Organization of Consumers and Users (OCU) has something to say.
Government mortgage aid so far
The measures to alleviate the mortgage burden were approved at the end of 2022 and the OCU points out that these have had a limited impact. The number of beneficiaries has been quite reduced (55,000 applications until September 2023), half of them remain pending and almost half have been rejected for not meeting the established requirements. For this reason, the Government has increased the scope of aid for 2024, but the OCU is not satisfied with them.
Mortgage measures that are extended or expanded in 2024
Income limit extension
Last year, the Code of Good Practices only welcomed families with income less than 29,400 euros per year. However, in 2024 The limit will rise to 37,800 euros per yearso around 100,000 families more will be able to benefit from the Government’s mortgage aid: Freezing the interest rate for 12 months and extending the repayment period up to a maximum of 7 years.
- Extension of the suspension of commissions for total or partial early repayment for variable mortgages
- Extension of the elimination of the commission for subrogations in which interest is changed from variable to fixed
In addition, a commission will not be applied when changing from a variable to a mixed type.
Criticism of the OCU of the Government’s measures
Although from the OCU they celebrate the extension of all these measures, they continue to think that they are “insufficient”, as expressed on their official website. According to the organization in charge of consumer protection, the measures “they should not be limited only to certain incomes, given that the possibility of freezing the quota and extending the term does not mean forgiving debt,” but to extend the return period.
They also assure that remaining consumers excluded from these aids They have no other option but Negotiate directly with your bank. However, this can bring many disadvantagesas “possible abuses” taking advantage of the vulnerable situation of the mortgaged. From the OCU they list possible obstacles such as “the application of new expenses, commissions or guarantees, or the obligation to contract new products marketed by the bank, such as insurance or pension plans.”