Spanish Law Could Slash Your Mortgage Payments

Spanish Mortgage Holders Can Reduce Payments Thanks to 2012 Decree A recent TikTok video by lawyer Xavi Abat (@xavi_abat) has highlighted a little-known Spanish law that could significantly benefit mortgage holders. The 2012 decree allows borrowers to negotiate lower payments with their banks under certain conditions. Abat explains that the law permits reductions in mortgage payments and even allows for the temporary suspension of capital payments. "This 2012 decree lets you demand your bank lower your mortgage payments," Abat states in his video. He goes on to list several major banks, including BBVA, ING, CaixaBank, and Santander, that are reportedly adhering to the law's guidelines. However, there are income requirements. Abat explains that the family's combined annual income cannot exceed three times the 14-payment annual IPREM (Indicador Público de Renta de Efectos Múltiples, or Public Income Indicator of Multiple Effects). For a family of four, this translates to a limit of approximately €33,600. While the video uses some clickbait tactics, the information it presents is potentially beneficial to many Spanish homeowners facing financial difficulties. The video's popularity suggests a significant number of people are seeking this information, indicating a strong need for increased awareness of this existing legal recourse.