Sector moratorium on BBVA mortgage and consumer loans
What did the sector moratorium consist of?
This is a benefit that BBVA offered its customers (employees and the self-employed) with a mortgage or consumer loan with BBVA dated prior to March 2020 and who anticipated temporary problems making their monthly payments due to reduced earnings as a result of COVID-19.
It consisted of deferring the repayment of the principal on the loan for the duration of the moratorium.
The period of the sector moratorium for non-mortgage loans was 6 months. In the case of mortgage loans, the term was 9 months. In both cases, if you previously received the Legal or Sector Moratorium, or both, the sum of the two cannot exceed 6 months for non-mortgage loans or 9 months for mortgage loans.
What did the application of the moratorium entail?
- During the moratorium period, the principal on the loan was not paid. Only the interest on the loan was paid.
- The term of your loan was extended by the period of the Moratorium (six months for non-mortgage loans and nine months for mortgage loans).
Once the moratorium is over, the outstanding capital will have to be repaid to the Bank by way of payments that include both the capital and interest, which are recalculated based on the terms agreed in the Loan. The Bank provides a new repayment schedule for the remaining loan installments.
What documentation was needed?
The necessary documentation was:
Every account holder and co-signer of the loan had to sign the following documents:
- Moratorium application, includes a sworn statement that you are affected by COVID19.
- In the case of mortgage loans for a primary residence, the Code of Best Practices information document.
- Amendment contract, lack of capital and extension of term.
For its part, BBVA had to provide simplified information on the terms and conditions of the loan, along with the proposed agreement establishing the moratorium. These documents also had to be signed.
How was it requested?
When was the deadline for requesting the sector moratorium?