UGT asks the Government for a state "protection fund" with aid in the face of the increase in the cost of mortgages

UGT asks the Government to create a "protection fund" to deal with the increase in the cost of mortgages due to the rise in interest rates and the Euribor. The union estimates that the increases can be placed at “160 euros per month”. An increase that "is an unexpected and very high cost overrun for our homes, which can generate many problems of non-payment for many families", warned Mariano Hoya, Deputy Secretary General of UGT.

The new rise in ECB rates will lead 20% of mortgagees to exceed the red line of indebtedness

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The union has published its proposal this Friday, advanced a few days ago by its general secretary, Pepe Álvarez. After the highest historical rise in interest rates by the European Central BankUGT calculates that mortgages will increase "by around 160 euros, that is, about 1,900 euros a year, an extra cost that represents 1.2 times the average full-time net salary for a month in Spain, and that a good part of homes are not going to be able to bear it”, points out the union organization.

Faced with this situation, the union calls on the Executive for an extraordinary protection fund to help families with problems to meet their mortgage payments. This week Podemos, ERC and Bildu have also put pressure on Pedro Sánchez to limit mortgages in the face of a “massive risk” of defaults.

A “protection fund” for the most vulnerable

The UGT proposal consists of the creation of a state budget fund to help deal with this increase in costs for families, which are detailed in a document of your study service.

The union explained this Friday that the beneficiaries would be people with a total income below the average salary in Spain, "25,000 euros", and people or cohabitation units in a situation of social vulnerability, such as "dependent people and victims of domestic violence". gender”, has detailed Mariano Hoya.

“In order to access said fund, those people who meet one of the exposed requirements must prove, in turn, that the monthly payment of the mortgage in the habitual residence exceeds 30% of the net monthly income of the person or cohabitation unit” , UGT has reported in a note.

Regarding the amount of support for families, UGT proposes that the state fund cover, through 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.

Estimate of 340,000 affected mortgages

The union estimates that the measure "could affect about 340,000 home mortgages", which Mariano Hoya has placed at "11% of variable-rate mortgages." According to the organization's calculations, "650 million euros would be needed to absorb the entire extra cost generated in families."

Hoya has stressed that the measure is "perfectly affordable", since "the Government hopes to collect 1,500 million euros with the new Tax on Large Financial Institutions", the new tax on banks which has just passed the first parliamentary step. An amount that the union points out that “it will be even higher by about 250 million after the announcement of the ECB rate hike.”

Thus, UGT maintains that "the size of the proposed Fund would be about a third of that collection."

From the union they affirm that they are not closed "to other proposals that are aimed at protecting families against the increase in mortgage costs." "We understand that it is necessary to guarantee extraordinary lines of liquidity that avoid the accumulation of insolvency cases and that derive a loss of purchasing power for families", they add.

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