Sector moratorium on BBVA mortgage and consumer loans
What is the sector moratorium?
This is a benefit that BBVA is offering its customers (employees and the self-employed) who have a mortgage or consumer loan with BBVA dated prior to March 2020 and who anticipate temporary problems making their monthly payments due to reduced earnings as a result of COVID-19.
It consists 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 is 6 months. In the case of mortgage loans, you can choose between 6 and 12 months. In both cases, if you previously received the Legal Moratorium (currently 3 months), the sum of both cannot exceed 6 months for non-mortgage loans or the period chosen for mortgage loans (6 or 12 months).
What does the application of the moratorium entail?
- During the moratorium period, the principal on the loan is not paid. You only have to pay the interest on the loan.
- The term of your loan is extended by the period of the Moratorium (6 months for non-mortgage loans, and your choice of i) six months or ii) twelve months for mortgage loans).
Once the moratorium is over, you will have to repay the Bank the outstanding capital by way of payments that include both the capital and interest, which will be recalculated based on the terms agreed in the Loan. The Bank will give you a new repayment schedule for the remaining loan installments.
Once the state of emergency is lifted and people are free to move, any changes to the period of a mortgage-backed loan must be signed before a Notary Public. It must be signed within one month following the request by the bank. In this case, the expenses will be allocated according to the law.
What documentation do I need?
If you request the Sector Moratorium, you can provide an affidavit where you state that you cannot provide the certifying documentation required at this time but that you satisfy the requirements specified as a result of the COVID-19 crisis, and therefore that you are financially affected and are eligible for the BBVA Sector Moratorium. The Bank reserves the right to request said documentation from the applicant(s) when deemed necessary.
If you also request the Legal Moratorium but can't provide some of the documents, you can also replace them with an affidavit that expressly justifies the reasons for not providing them (as a result of the COVID-19 crisis). Once the state of emergency and any extensions are lifted, you will have one month to provide any documentation that you did not present earlier.
If you have it, the documentation required is as follows:
- Certificate of unemployment dated after March 13.
- or a certificate proving you were permanently or temporarily laid off after March 13.
- or a current pay stub and pay stubs for January and February, showing a drop in fixed income of over 40%.
- Certificate of cessation of activity dated after March 13.
- or by providing the tax return (IRPF) for the first quarter of 2020 and the tax returns for the last two quarters of 2019, which show a drop in sales of more than 40% compared to the average of the second half of 2019,
- or Form 036 or 037 (form where they specify their activity), to verify that they belong to a sector other than those deemed essential by the State, and whose activity has thus not been suspended.
In addition, every account holder and co-signer of the loan has to sign the following documents:
- Information document on the BBVA Legal and Sector Moratorium.
- 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 will provide you with the proposed agreement establishing the conventional moratorium, along with simplified information on the terms and conditions of the loan.
When's the deadline for requesting the sector moratorium?