A MORATORIUM on home repossessions for 'vulnerable' householders will continue until the year 2020, and new measures have been included in the Banking Code of Good Practice to protect the consumer.
Whilst in theory, anyone on the verge of losing a home through inability to pay the mortgage is a 'vulnerable' householder, until now this only included those with children aged three or under.
Now, it applies to owners with children aged under 18, and to any member of the household who is a blood relative or relative by marriage up to the 'third degree', or third generation, and who is disabled, seriously ill or a dependant.
This is also the case for any relative living with the homeowner – again by marriage or blood, and up to the third generation – who is a victim of domestic violence, for example a person who has escaped an abusive relationship and returns to live with his or her parents, grandparents, or brother or sister.
The Code of Good Practice, additionally, includes the option for the affected householders to rent the home which has been repossessed 'in favourable conditions', for a maximum annual cost of 3% of the market value of the property as shown by a valuation funded by the mortgage lender.
This 'tenancy agreement' will be valid for five years, and can be renewed for another five thereafter.
Spain's economy ministry, led by Luis de Guindos, has announced that within the next eight months it will bring into force a Bill of Law, or Royal Decree, proposing measures aimed at the affected owner getting back the ownership of his or her repossessed property he or she is now renting.