Up to 80% of the population finds it increasingly difficult to become the owner of a new home, but at the same time in Spain, more than two million mortgages have been signed in the last five years, according to the National Institute of Statistics. Many becoming possible thanks to bank financing.
In the specific case of BBVA in Spain, between 1990 and 2022, the bank has financed more than two million families to purchase a home. “In 2023, more than 50,000 families bought their home with a BBVA mortgage,” explains BBVA mortgage manager in Spain, Ana Pitarch.
“The most important thing to make this decision is to know if it is the right time, based on the stability you have in your life or family cycle, your professional circumstances and your expectations of the real estate market,” explains Pitarch, while remembering that Buying a home is probably “the most important financial decision of our lives, we have to dedicate some time to it, do numbers and take into account that unforeseen events may arise in the future.”
Therefore, in a context of economic slowdown and rising interest rates, entities also look after clients in vulnerable situations and work hand in hand with them to find solutions adapted to their needs at all times, such as dealing with the payment of their mortgage payments. Since the beginning of the financial crisis in 2008 and until 2022, BBVA has made homes for social rental available to its clients who have difficulty paying their mortgage loans.
Banks and their foundations have decades of experience in managing help for the most vulnerable groups, with professionals and volunteers spread throughout Spain. Their work is essential to maintain the cohesion of many people who, for different reasons, cannot access aid through the usual channels. Since 2022, and in response to growing social concern, entities have focused on serving vulnerable clients or those who require a differentiated service, with the aim of promoting financial inclusion.
Banks collaborate with the Government in the creation of protocols to address social challenges, such as the impact of digitalization, the depopulation of rural areas or the effect of rising interest rates. An example is the Code of Good Practice to help people with difficulties in paying their mortgages. They are also key in the solidarity campaigns promoted by governments to raise funds. In short, banking has been key to mitigating the impact of the latest economic crises, the COVID pandemic and various natural disasters, such as the eruption of the La Palma volcano.
In the specific case of mortgages, clients with difficulties can request to benefit from the Code of Good Practices (CBP), if they meet a series of requirements. This code contemplates a reduction in the interest rate, the application of a grace period and the extension of the loan term. In the event that the restructuring does not work, the code provides for the possibility of requesting a debt write-off. If this is not enough to resolve the client's situation, they are offered the option of handing over ownership of their habitual residence to the bank (dación en pago), in exchange for canceling the outstanding debt, and having the right to continue living in it. for rent.
BBVA goes further and contacts 100% of its clients and, even if they do not meet the requirements to adhere to the Code of Good Practices, it offers them solutions adapted to each particular case.
Furthermore, during the last crisis, BBVA established a Mortgage Debtor Protection Committee that allowed solutions adapted to clients with greater difficulties, beyond those required by law, thus until December 2022 it has made almost 7,000 homes available to its clients. for social rent.
Beyond the positive impact generated by the banking business directly, banks also seek to support society through their social action. In the case of BBVA, through the Commitment to the Community 2025, it will allocate, together with its foundations, 550 million euros to social initiatives in the period 2021 to 2025. This plan aims to reach 100 million people, with the aim of reducing inequalities and promote entrepreneurship, contribute to creating opportunities through education and support research and culture.
In short, banking is a business based on trust, where a strong bond is built with customers. This relationship is not static, but rather constantly evolving: families and companies advance in their vital status and demand different services and products. And society as a whole is transformed. We must remember that banking is a people business, where personal treatment is key. In this sense, consumers demand more personal and human banking: a bank that allows them to carry out digital transactions, but also accompanies them in a close and personalized way when making decisions related to the management of their money.
