House Finance Corporation (HFC) announced on Wednesday, March 3 that they are going to launch a program to help households who cannot pay off their mortgages.
The program was named Hercules.
According to HFC, it is addressed to borrowers whose home loans meet the following criteria:
- real estate must be the main place of residence of the borrowers for the last three years;
- the loan must be issued by the end of March 2013;
- the loan balance must exceed EUR 50 000;
- late payment delays (by the end of 2020) must be more than a year.
The Hercules program writes off a part of the interest rates from the date of loan issue date until December 31, 2020.
The amount to be written off will depend on the loan balance as of December 31, 2020 and the borrower's decision to repay the loan in full or to prefer its restructuring.
In particular:
1. If the loan amount is more than EUR 200 000,
40% of interest will be written off if the loan is to be fully paid,
25% of interest will be written off if the loan is to be restructured.
2. If the loan amount is EUR 150 000 to 200 000,
35% of interest will be written off if the loan is to be fully paid,
20% of interest will be written off if the loan is to be restructured.
3. If the loan amount is EUR 100 000 to 150 000,
30% of interest will be written off if the loan is to be fully paid,
15% of interest will be written off if the loan is to be restructured.
4. If the loan amount is EUR 50 000 to 100 000,
20% of interest will be written off if the loan is to be fully paid,
5% of interest will be written off if the loan is to be restructured.
HFC noted that the program will not apply to government-funded housing loans and loans included in other government programs.
If you want to get more information on the new Hercules program, or to apply for it, then visit the House Finance Corporation website.