Help with Higher Mortgage Repayments to Be Shifted to Banks as of December

Bratislava, 14 October (TASR) - Improving the provision of consumer credit, increasing consumer protection and promoting a functioning internal market in this area are some of the stated objectives of a new law on consumer credit and other credits and loans for consumers that MPs finally approved on Tuesday. Via an amendment, they also transferred state aid with increased mortgage repayments from the state to banks as of December of this year. It should be available for two more years. "Due to the fact that this is optional assistance from the bank, mortgage assistance will only be given to customers after the bank decides to provide such assistance; of course, after the legal conditions have been met, until 30 November 2027. If the bank decides to provide the mortgage assistance, the bank will automatically pay the mortgage assistance to clients who have been receiving a benefit from a labour office," said the authors of the amendment. For other clients, the bank will disburse the assistance after an application is submitted and the legal conditions are met, in particular the condition of an increase in repayments due to interest rate alterations and the income condition. Banks will only assess income on a one-off basis at the start of mortgage assistance. The parameters of the aid will remain at the current level, i.e. 75 percent of the positive difference between the monthly instalment paid and the reference instalment, up to a maximum of €150 per month. The main task of the approved law is to transpose the requirements of the 2023 European Directive on credit agreements, which replaces the 2008 Directive. am/df