In a dramatic move, the Spanish Government has announced that it is to offer a repayment holiday to the unemployed, and to some pensioners. Their Prime Minister said the scheme could affect as many as half a million people, who should appreciate that their government is ready to help in this positive way. It remains to be seen whether other European countries will embark on a similar course, but it seems sure that some will introduce comparable facilities.
Under the Spanish scheme, those who become unemployed, along with some pensioners who have families to support, will be allowed to defer up to one half of their mortgage repayments, for a period of up to two years. It seems that the government will guarantee payments under the scheme, to ensure that lenders do not lose out. The maximum mortgage to qualify under the scheme will be €170,000.
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Spain has enjoyed a decade of growth in the construction industry, which is closely related to tourism requirements. Unfortunately the industry is suffering as the worldwide building bubble burst. However, with the credit crunch threatening to get worse before it gets better, the moratorium will be seen as a welcome measure. In common with the rest of Europe mortgage lending has fallen significantly, and any stimulus the government can offer will be welcome.
It must be said that the Spanish government has regulated its financial sector better than some other European countries. Therefore, the situation is not as bad as it could have been, but as the downturn continues it is possible that one of the first things people will cut down on is holidays. That could have a serious affect on tourism, and it is difficult to forecast when international circumstances will improve.
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mortgage holiday in Spain
mortgage holiday in Spain
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