Homebuyers' help package finalized 01/05/2008 00:00

In a bid to revitalize the economy and cushion overly indebted home owners, the government on Tuesday signed an agreement with Spain's banks, property registrars and notaries that will eliminate all costs for anyone wishing to extend the repayment period on their home loan.

Madrid - In a bid to revitalize the economy and cushion overly indebted home owners, the government on Tuesday signed an agreement with Spain's banks, property registrars and notaries that will eliminate all costs for anyone wishing to extend the repayment period on their home loan.
The move, part of a package of economic stimulus measures unveiled during the campaign for the March 9 general election, will save the holder of an average mortgage of 149,000 Euro, around 300 Euro in bank charges, tax and fees. By lengthening the duration of the loan, home owners may be better able to absorb the impact of higher interest rates on their monthly bills, while giving them more money to spend to prop up Spain's flagging economy.
"They will suffer no costs," Economy Minister Pedro Solbes declared after the deal was signed. Free mortgage extensions will be possible for the next two years, he noted. However, to obtain a mortgage extension the homeowner's bank must agree and in the long term they will end up paying considerably more in interest.

El Pais