UGT will ask Calviño to create a fund to face the rise in the mortgage

The General Secretary of the UGT, Pepe Álvarez, will meet this Monday at 6:30 p.m., with the First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, to address the Recovery Plan agenda. A meeting in which he plans to transfer her proposal to the vice president and the report you have made for the creation of a Protection Fund against the rise in mortgages that implies the rise in interest rates and the Euribor, endowed with about 650 million of euros.

The union believes that the increase in mortgage paymentss will not be able to be supported by a large part of households, for which reason it is essential to incorporate new measures to protect access to housing, such as part of a reinforcement of the social shield. For this reason, UGT wants a state budget fund to be created to help people and households who are paying a mortgage and are going to see how its cost rises “extraordinarily and excessively at your next renewal“, as a consequence of the increase in the reference rates established by the European Central Bank (ECB).

According to the union’s proposal, the beneficiaries would be people with an income totals lower than the average salary in Spain and people or units of coexistence in a situation of social vulnerability. In order to access this fund, those people who meet one of the stated requirements must prove, in turn, that the monthly payment of the mortgage on their habitual residence exceeds 30% of the person’s net monthly income or living unit.

Regarding the amount, the state fund would cover, by means of a monthly benefit, the extra cost generated in the event that the Euribor exceeds a value of 1.5 points and would have a maximum duration of 12 months, with the possibility of extension in case the established requirements persist. UGT estimates that the measure may affect about 340,000 home mortgages, which would require 650 million euros to absorb the entire extra cost generated in families. In this sense, Pepe Álvarez’s union calculates that the Government will collect 1,500 million euros with the new banking tax, an amount that “will be even higher by about 250 million after the announcement of the ECB rate hike”, so the size of the proposed fund would be about a third of that collection.

Calviño “will listen to all proposals”

For her part, the first vice-president of the Government assured last Friday that she will “listen carefully” to all the proposals that are made so that families can afford the rise in mortgages. However, he recalled that “this is not new” and that in 2019 the Mortgage Law was already modified so that citizens could “easily” change from a variable-rate mortgage to a fixed-rate one “at no cost or at a very low cost “. “We have already approved that. Starting with a number of years of mortgage and with a low cost in the first years, citizens can now change their mortgage from a variable rate to a fixed rate. You have to be aware that most of the mortgages that have been subscribed in recent years they are at a fixed rate and many citizens subscribed to them years ago and they did not benefit from the fall in interest rates that we have experienced,” he stressed.

Calviño also recalled that the Government has worked with the banking sector to have a Code of Good Practices to restructure debt and “flatten” payments monthly to people who have difficulties. “Now what we are going to see is whether it is necessary to strengthen these instruments to support families who may have a difficulty,” he stated. In any case, the vice president insisted that in order to face the challenges, be it paying for electricity, heating in winter, going back to school or paying the mortgage, “the best and most important thing is to continue creating jobs and improving wages”. For now, the Government has already said ‘no’ to Podemos’s proposal to limit the rise in variable-rate mortgages paid by the most vulnerable families.

The President of the Government, Pedro Sánchez, said this week that “the limits on mortgages” proposed since United We Can “are not allowed” in “the European Union treaty”, although he has assured that he shares the “analysis” of his coalition partner. For her part, the Minister of Finance, María Jesús Montero, has argued that the approach of the ‘purples’ “is not adjusted to the legal framework” and can bring “difficulties” for citizens with fixed-rate mortgages. “The measures that we have to propose always have to be fair measures, that do not penalize one party against another, and that means that a detailed study must be made of how and how banks can be asked to help in the event of a increase in mortgages that we had already anticipated. Hence the tax on banks,” he said a few days ago.


Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.

*The article has been translated based on the content of LA INFORMACIÓN – Lo último by www.lainformacion.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!