How to get help to pay your Spanish mortgage during coronavirus crisis

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How to get help to pay your Spanish mortgage during coronavirus crisis
View of the Bank of Spain in an empty Madrid during coronavirus lockdown. Photo: AFP

Spain has introduced a raft of measures designed to help those financially hit during the coronavirus crisis and that includes a moratorium on mortgage repayments for those who lose their jobs or suffer a drop in income as a result of covid-19 measures.


These are outlined under the royal decree that approved the state of emergency, published in the official state bulletin on March 17th. 

Who can apply?

First of all it is only available to those who are resident in Spain and have mortgages with Spanish lenders and is only applicable to those struggling to meet payments on their primary place of residents.

So if you don’t live permanently in Spain or the mortgage is on a second home or one you let out to holidaymakers, then you won’t qualify for the moratorium outlined under state of emergency measures.



People confined to their homes in Madrid. Photo: AFP

How to qualify?

There are basically four conditions you have to meet in order to qualify for mortgage relief on your primary residence:

-  You will need to prove that you have either lost your job or seen your income cut by at least 40 percent as a result of the coronavirus crisis.

-   You will also need to prove that your total family income in the month prior to requesting relief did not surpass three times the IPREM household income reference. That means that if it currently stands at €537.84, your total family income must have been below €1,613.52 in February in order to qualify.

However if you have dependent children or an elderly relative (over 65) living with you, the base will be increased by 0.1 times the IPREM index (€53.78) per child (with two parents in the house) and 0.15 for single parents.


If a family member has a disability further allowances are made.

-   Another requirement is that your mortgage repayment plus basic expenses and monthly utility costs make up at least 35 percent of the net household income.

-   Finally your mortgage repayment as a percentage of your reduced household income must have multiplied by at least 1.3 in order to qualify for the moratorium.

How to apply:

You will need to apply for this mortgage holiday this direct with your mortgage lender, presenting proof of the above circumstances. 

You will also need to present your Nota Simple (property registration), your libro de familia or empadronamiento certificates for all those who live with you, your deeds of sale and mortgage deeds, and a debtor’s declaration of responsibility in compliance with the requirements stated in the royal decree.

Bear in mind that you can’t just walk into your branch and speak to your bank manager but will need to make an appointment over the phone. Attending the appointment is one of the exceptional circumstances under which you are allowed to leave the house.


Is there a deadline?

Those who qualify can apply for an interest-free mortgage repayment deferral which will last the duration of the state of emergency and can be applied for up to 15 days after the end of the decree.

The currently means you will have to make the application by May 3rd although that will be extended if the lockdown is continued beyond April 11th. 




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