Conditions for application

The measures provided in the Code shall be applicable under the following conditions:

1.1. Applicants economic and personal conditions

1.1.1. Debtors, guarantors and sureties of credit or loan secured by mortgage on the debtor’s main residence shall be in the “exclusion threshold”, so that the following requirements must be fulfilled:

  • A. The combined income of all members of the family unit must not exceed 3 times the annual IPREM index over 14 payments, although this limit may be increased to 4 times if any member of the family unit has a registered disability in excess of 33%, is in a situation of dependence owing to illness that prevents said individual permanently from working, or up to 5 times, if the mortgage debtor has cerebral paralysis, mental illness or a recognised learning disability equal to or higher than 33%, or a recognised physical or sensory disability equal to or higher than 65%, or a serious illness that prevents said individual or their carer from working.
  • B. Within the four years prior to the application, the family unit has undergone significant changes in their financial circumstances, in terms of their housing burden, or if they have been affected by family circumstances that places them in a situation of particular vulnerability.
    Furthermore, family circumstances that place the family in a situation of particular vulnerability are understood to refer to:
    • Large families, in accordance with current legislation.
    • A single-parent family unit with children.
    • Family units that include a minor.
    • Family units with a member who has a registered disability in excess of 33%, or a member in a situation of dependence or who suffers from an accredited illness or disease that permanently incapacitates that individual from working.
    • Family units in which one or more people live together in the same property who are linked to the mortgage holder or the latter's spouse through a bond of kinship up to the third degree of kinship or affiliation, and who are in a situation of accredited personal disability, dependence, or serious illness that prevents them temporarily or permanently from working.
    • Family units in which there is a victim of gender violence.
    • Debtors over the age of 60, even if they do not fulfil the requirements to be considered a family unit in accordance with point a) of this section.
  • C. That the mortgage payment exceeds 50% of the family unit net incomes (in case of disabled, the percentage is reduced to 40%).

1.1.2. Additional conditions to the removal or dation in payment

  • a) That all members of the family unit lack any assets or property rights sufficient to deal with the debt.
  • b) That it is a credit or loan secured by mortgage that falls on the only debtor/s dwelling and has been granted to the acquisition thereof.
  • c) That it is a credit or loan lacking other personal or property guarantee, or in the case of such property guarantee, lacking other assets or property rights sufficient to deal with the debt.
  • d) If there are co-signers that are not part of the family unit, they shall be included in the circumstances a), b) y c) above.

1.1.3. The concurrence of these aforesaid circumstances shall be accredited by the debtor to the Entity through the filing of the following documents:

  • a) Income collection of the family unit members:
    • Tax certificate and where appropriate, certificate regarding the submission of the Property Tax in relation to the last four tax years.
    • Last three payslips perceived.
    • Certificate issued by the benefits management entity, in which it may appears the monthly amount perceived in respect of unemployment benefits or subsidies.
    • Accreditation certificate of social wage, minimum insertion income or similar social assistance aids granted by the Autonomous Communities and local entities.
    • In the case of self-employed, if perceiving benefit for termination of activity, the certificate issued by the management organ in which it may appears the monthly amount perceived.
  • b) Number of people living in the dwelling:
    • Official family book or accreditation document evidencing the registration as common-law spouses.
    • Census certificate regarding people registered in the dwelling, with reference to the submission date of the accreditation documents and also to the previous six months.
    • Statement of Disability, dependence or Permanent incapacity to work.
  • c) Goods ownership:
    • Ownership certificates issued by the Property Register in relation to each of the family unit members.
    • Deed of sale of the dwelling and deed of constitution of mortgage security and any other supporting documents, where appropriate, of other constituted property or personal guarantees, if any.
  • d) of the debtor/s regarding to the compliance with requirements to be considered in the exclusion threshold according to the model approved by the commission established for the monitoring compliance of the Good Practices Code.

1.2. Dwelling conditions

The code shall be applied to mortgages granted for the sale of dwellings whose purchase Price may not exceed the following values:

1.2.1. General terms and conditions:

The acquisition price of the mortgaged property may not exceed 20% of the value calculated by multiplying the total square metres of the property by the average price per square metre for housing given by the IPV prices index for the year in which the property was purchased, and the province in which it is located, with an absolute limit of €300,000. Properties acquired before 1995 will take the price corresponding to the year 1995 as the average reference price.

1.2.2. Conditions only applicable to dation in payment:

Dation in payment is only available for mortgages constituted by way of loans or credits granted, when the acquisition price of the mortgaged property does not exceed the value calculated by multiplying the total square metres of the property by the IPV prices index for the year in which the property was acquired and the province in which said property is located, with an absolute limit of €250,000. Properties acquired before 1995 will take the price corresponding to the year 1995 as the average reference price.