• The measure will make it possible to defer payment of the capital with a grace period of up to two years.
  • The sector maintains its commitment to Andorran society in difficult times, as it did with Covid-19.

The banks that make up Andorran Banking have agreed to implement measures to alleviate the negative effects of the increase in interest rates on mortgages for primary residences for particularly vulnerable families. Thanks to the sector agreement signed by Andbank, MoraBanc and Crèdit Andorrà, customers who meet the conditions set will be able to opt for a deferment of their mortgage repayments.

Who can take part in the measures?

The agreement is aimed at families with a debt in the form of variable-rate mortgage loans for the purchase of their main residence and who are in a vulnerable situation as a result of the rise in interest rates. Those operations formalised prior to 15 December 2022 will be eligible.

To qualify for the deferral of the payment of the instalment, the total income of the members of the family unit must not exceed €32,000 per year; the mortgage instalment must be more than 30% of the family unit’s income; and the loan instalment must have increased by at least 30% due to the increase in interest rates since mid-2022.

How the measure is implemented

Once the application has been approved, a novation of the loan contract will be formalised, stipulating a grace period of a maximum of two years. A public deed will be required. During this grace period, the corresponding capital amortisation will be deferred, and only the amount corresponding to interest will have to be paid. The deferred amounts will be settled by extending the repayment period of the loan originally granted by a number of months equivalent to the duration of the grace period.

This sectoral agreement is an initiative of Andorran Banking to provide facilities to families whose mortgage loan, with the increase in the instalment due to the rise in interest rates, enters into a situation of vulnerability.

The sector maintains its commitment to Andorran society to guarantee its sustainability in more difficult times, just as it was an important point of support during the Covid-19 pandemic with the soft loan programme.

Sectoral agreement to support vulnerable families December 2022 (in catalan)