Bank of Spain's new warning to property owners:

Bank of Spain has issued a warning to property owners about the current economic situation. Experts predict a challenging fall and winter due to high inflation, rising prices and higher interest rates, making monthly mortgage payments even more expensive.

In particular, the banking supervisor estimates that GDP will grow by 1.4% next year, seven-tenths less than the 2.1% projected by the Sanchez government.

Bank of Spain warning

The Central Bank of Spain has expressed its concern for families who allocate a significant portion of their salary to monthly mortgage payments, but mainly those who spend more than 40% of their income on loan repayments, which only worsens their financial situation. Given the current context and the absence of an improvement forecast, the Bank of Spain expects that the number of households with significant financial burdens could increase by 4 points to 350,000, according to information from Spain diario.

Recommendations of the Bank of Spain

In light of the situation, the Bank of Spain recommends that all families with variable mortgage interest rates replace them with a fixed one, thanks to which they will pay the same amount each month. There are three ways to change from a variable mortgage to a fixed mortgage: a contractual change, switching to another lender, or repaying the previous loan in full.