BBVA Legal Mortgage Moratorium

At BBVA, we helped reduce the impact of coronavirus

On February 3, 2021, Royal Decree-Law 3/2021 was published in the Official State Gazette, which established an extension of the application period (until March 30, 2021) and the duration of the moratoriums set out in the previous law (up to 9 months).

The law detailed the urgent and extraordinary measures to address the socioeconomic impact of COVID-19 and described the conditions, documents and timeline for requesting the suspension of mortgage payments on a primary residence, properties assigned to a commercial activity, or homes rented by private individuals on which the rent was no longer being paid.

Our customers with a mortgage loan at BBVA who satisfied the vulnerability conditions due to COVID-19 were able to apply for this moratorium, during which time their payments on a mortgage loan were suspended for up to nine months, with no payments and no late interest.

It was important to keep in mind that the application of the moratorium changed the duration of the mortgage loan by the same number of months as the payments were suspended. The Company signs a loan amendment before a Notary Public specifying this new term. The cost of this amendment will be borne by BBVA.

What did this Legal Mortgage Moratorium entail?

BBVA offered its customers (employees and the self-employed) who have a mortgage loan with BBVA dated prior to March 13, 2020, and who may have had temporary problems making their monthly payments due to reduced earnings as a result of COVID-19, the option to apply for the legal moratorium.

It consisted of postponing the full payment of the mortgage loan (no principal or interest was paid) for the duration of the moratorium, up to a maximum of 9 months.

If you previously received the Legal or Sector Moratorium, or both, for your mortgage loan, the sum of the two cannot exceed 9 months.

What did the application of the Legal Mortgage Moratorium entail?

The full payments were not made during the suspension period.

The term of your mortgage loan was extended by the length of the Moratorium requested.

Once the moratorium is over, the outstanding principal will have to be repaid to the Bank through payments that include both the principal and interest, which are recalculated based on the terms agreed in the mortgage loan. The Bank provides a new repayment schedule for the remaining installments.

How was the application requested?

To submit the application, you had to contact your branch or your usual adviser. They answered any questions and told you what documents you needed.

Documentation Required

Employment status documents:

  • If legally unemployed: a certificate issued by the company managing the benefits that shows the monthly amount received for unemployment benefits or subsidies.
  • In the event of a work stoppage by self-employed workers: certificate issued by the State Tax Administration Agency (AEAT) or by the competent body of the Autonomous Community, where applicable, on the statement of work stoppage declared by the applicant.

Documents that can be used to verify the number of individuals living in the property:

  • Family book or document certifying the registration as a civil partner.
  • Census certificate for the individuals registered in the property, with reference to the time of presentation of the supporting documents and to the previous six months.
  • If applicable, a declaration of disability, dependency or permanent disability to carry out an employment activity.

Documents that certify ownership of the assets:

  • Simple note from the property registry for all members of the family unit.
  • Deed of sale of the home and of the mortgage-secured loan.

Document required for a rental home:

Lease Contract.

Affidavit from the borrower/guarantor/mortgagor:

The affidavit that must be signed by all the borrowers, indicating compliance with the legal requirements to be regarded as having insufficient financial resources, is contained in the application form, which is available at your branch.    

The deadline for requesting this mortgage moratorium was March 30, 2021.

The laws that lay out this process:

  • Royal Decree-Law 8/2020, published in the Official State Gazette on March 17, 2020.
  • Royal Decree-Law 11/2020, published in the Official State Gazette on April 1, 2020.
  • Royal Decree-Law 26/2020, published in the Official State Gazette on July 8, 2020.
  • Royal Decree-Law 3/2021, published in the Official State Gazette on February 2, 2021.