Central Government is to introduce measures to curb the worst excesses of the mortgage market and in order to assist and protect those facing re-possession proceedings.
The measures will increase the limit of the borrower’s income which is immune from distraint in the event of re-possession by some 50% from 641 euros a month to 961 euros a month for those without families. For those with dependents there will be an additional 30% for each dependent up to a maximum of 1,300 euros.
This measure answers in part the demands of the of 15M Movement that lenders should accept the re-possessed property in full settlement of the mortgage debt and not pursue borrowers if the subsequent sale of the property does not raise sufficient funds to settle the full mortgage debt.
The Government also intends to make the “clausulas suelo” (a level below which interest rates may not fall) which some lenders impose illegal and to introduce a protocol for lenders offering mortgages including the obligation to employ an “independent and solvent” institution to assess the value of a property.
