Extension of aid against inflation, drought and mortgage rate hikes

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1. The waiver of fees for early repayment of a variable-rate mortgage or for switching it to a fixed rate (or to an initial fixed rate of at least 3 years) is extended until December 31, 2024.
2. Fees for switching from a variable rate to a fixed rate (or an initial fixed rate of at least 3 years) through novation or subrogation are capped at 0.05% of the capital repaid early during the first three years.
3. Banks may not charge fees for over-the-counter cash withdrawals by people over 65 or with a recognized disability of 33% or more. In addition, payment system operators must manage technological risk, and the Bank of Spain may sanction non-compliance from January 17, 2025.
4. The VAT cut on basic foods is extended until June 30, 2024: 0% for bread, flour, milk, cheese, eggs, fruit and vegetables, and 5% for oils and pasta.
5. Reduced VAT rates apply to energy: 10% on electricity throughout 2024, 10% on natural gas until March 31, 2024, and 10% on pellets, briquettes and firewood until June 30, 2024.
6. Contributory pensions and State civil servant pensions are increased by 3.8% in 2024 while the State Budget is not approved. The maximum pension limit is set at €3,175.04 per month and non-contributory pensions at €7,250.60 per year.
7. Public transport discounts are extended during 2024: aid to regional governments and city councils that cut pass prices by at least 50% (100% in the Canary Islands and the Balearic Islands), free travel for frequent users of Cercanías, Rodalies, Media Distancia and Avant trains, and a 100% discount on State-run buses for those making at least 16 trips every four months.
8. The suspension of evictions of vulnerable households with no housing alternative is extended until December 31, 2024, and a new guarantee line of up to €2 billion is created to promote social or affordable rental housing.

Who it affects

• People with a variable-rate mortgage: They can repay early or switch to a fixed rate without paying fees until December 31, 2024.
• People over 65 and people with a disability of 33% or more: They will not pay fees for over-the-counter cash withdrawals at the bank.
• Consumers and commuters: VAT cuts on basic foods and on electricity, gas and biomass are kept, along with public transport pass discounts.
• Pensioners: Their pensions rise by 3.8% in 2024 without waiting for the State Budget.
• Vulnerable families with housing problems: The suspension of evictions for those with no housing alternative is extended.

Words worth knowing

Amortización anticipada

Early repayment: paying back part or all of the mortgage money to the bank before the agreed date.

Novación o subrogación

Changing the loan terms with the same bank (novation) or moving the loan to another bank (subrogation).

Bono social

A discount on the electricity bill for low-income or vulnerable households.

Tarifa de último recurso

A maximum gas price set by the State for certain consumers, such as homeowners' associations.

Lanzamiento

A court action by which a person is evicted from a home.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries