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, customers could choose between 6 and 12 months. In both cases, if a customer previously received the Legal Moratorium (currently 3 months), the sum of both could not exceed 6 months for non-mortgage loans or the period chosen for mortgage loans (6 or 12 months).
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 (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, 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?
If only the Sector Moratorium was requested, a customer could provide an affidavit stating that they could not provide the certifying documentation required at the time but that they satisfied the requirements specified as a result of the COVID-19 crisis, and therefore that they were financially affected and eligible for the BBVA Sector Moratorium. The Bank reserved the right to request said documentation from the applicant(s) when deemed necessary.
If the Legal Moratorium was also requested but no other documents could be provided, a customer could also replace them with an affidavit that expressly justified the reasons for not providing them (as a result of the COVID-19 crisis). Once the state of emergency and any extensions were lifted, customers would have one month to provide any documentation that they had not presented earlier.
The necessary documentation was:
- 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 had 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 had to provide the proposed agreement establishing the conventional moratorium, along with simplified information on the terms and conditions of the loan.
How was it requested?
When was the deadline for requesting the sector moratorium?