Deco Proteste considers that the interest rate rebate model legislated by the Government is “insufficient” and proposed this Thursday an alternative scheme that slows the rise in interest rates to 3% and, avoiding costs to taxpayers, defers the capital until the end of funding.
“In addition to providing very tight access criteria that exclude an excessively large number of families, the expected support is not very expressive in quotas that rose by several hundred euros,” says Deco Proteste, who sent an open letter to the Government and the groups parliamentarians proposing a brake on the increase in benefits.
The installment “brake” model preferred by Deco Proteste establishes that “from the moment the interest rate applied to the contract rises three percentage points above that contracted at the initial moment of the loan, the borrowers can activate the brake on the quota and keep it constant in the following months”.
In this way, the maximum scenario of a 3% increase is met, which currently approved loans are already obliged to take into account when contracting, although it is not included in the European Standardized Information Sheet (FINE)”, says Deco Protest.
When “the installment brake is activated, the loan term is automatically adjusted.” However, knowing that “many families will have renegotiated, by now, the extension of the contracts up to the limit of the holder’s 75 years of age”, for “these cases”, Deco Proteste suggests “a deferral of the capital, which allows to maintain the constant quota and postpone the payment of the outstanding capital”.
The missing capital may begin to be paid “when the Euribor begins to fall below the 3% limit” -then, “the installment of these contracts remains constant and will not reflect any drop in interest”, accelerating the amortization of the loan”. salvage value” that had been submitted by the due date.
This proposal does not require financial intervention from the State. In this way, the effort of the taxpayers is no longer channeled to support the payment of the mortgage credit installments of families with high effort rates ”, he says.
In addition to proposing the introduction of this “provision brake”, Deco Proteste “continues to demand the extension of the IRS mortgage loan interest deduction to all loans”, and currently only interest on credit contracts is deductible housing deadlines. completed before 2011.
It also proposes a “temporary reduction in the Municipal Property Tax (IMI) for families with a high effort rate and the definition of a reference index for fixed-rate mortgage loans, which will make fixed-rate housing offers more competitive.” marketed by banks.
Source: Observadora
