Information about the 2022 Code of Good Practices

To be eligible for the alternative measures provided in NCBP 2022, all the subjective conditions described below must be met cumulatively:

a. The total income of the members of the family unit (*) to which you belong does not exceed the following required limits:

i. In general, the limit is four point five (4.5) times the Public Indicator of Multiple Effect Income (IPREM) annual with fourteen payments (hereinafter IPREM) (**).

ii. This limit will be five point five (5.5) times the Public Indicator of Multiple Effect Income (IPREM) annual with fourteen payments (hereinafter IPREM) if any member of the family unit has a declared disability greater than 33 percent, dependency status, or a disease that permanently incapacitates them for work.

iii. The limit will be six point five (6.5) times the Public Indicator of Multiple Effect Income (IPREM) annual with fourteen payments (hereinafter IPREM) if the mortgage debtor is a person with cerebral palsy, mental illness, or intellectual disability, with a recognized degree of disability equal to or greater than 33 percent, or a person with physical or sensory disability, with a recognized degree of disability equal to or greater than 65 percent, as well as in cases of serious illness that verifiably incapacitates the person or their caregiver for work.

(*) The family unit is composed of the debtor, their spouse not legally separated or registered domestic partner, and children, regardless of age, who reside in the home, including those linked by guardianship, custody, or foster care.

(**)IPREM 2023 MONTHLY AMOUNT = €600. IPREM 2023 ANNUAL AMOUNT (including pro-rata of extra payments) = €8,400. Four point five times IPREM 2023 = €37,800.

b. That, in the 4 years prior to the time of application, the family unit to which you belong has suffered a significant change in economic circumstances in terms of housing affordability, or that special family vulnerability circumstances have arisen during that period. For these purposes, a significant change in economic circumstances is understood to have occurred when the effort represented by the mortgage burden on family income has increased by at least 1.2 times (***)

(***)Previous monthly income of the family unit of €1,500 and previous monthly mortgage installments of €400 = PREVIOUS EFFORT OF 26.67% (400 €/1,500 €). Current net monthly income of the family unit of €1,500, and current monthly mortgage installments of €600 = CURRENT EFFORT OF 40.00% (400 €/1,500 €)

A significant change is considered when the mortgage effort has increased by 1.2 (result of the quotient of current effort divided by previous effort). In this case, (40/26.67) = 1.5. This is therefore an increase greater than the reference 1.2, and would be considered a significant change in economic circumstances.

A special family vulnerability circumstance is understood to exist in the following cases:

1st The family unit in which any of its members has a declared disability greater than 33 percent, dependency status, or a disease that permanently incapacitates them for work.

2nd The family unit with one or more people living in the same home who are related to the mortgage holder or their spouse up to the third degree of consanguinity or affinity, and who are in a personal situation of disability, dependency, or serious illness that verifiably incapacitates them temporarily or permanently for work.

3rd The family unit in which there is a victim of gender-based violence or trafficking or sexual exploitation.

c. That the mortgage installment is greater than 30% of the net income received by all members of the family unit.

For the purposes of points a) and b) above, pensioners of the Social Security system who have been recognized with a permanent disability pension in the degree of total, absolute, or severe disability, and pensioners of passive classes who have been recognized with a retirement or withdrawal pension for permanent incapacity for service or unfitness, will be considered as having a disability of 33 percent or more.

If, according to the provisions of the regulation, you are a resident in one of the municipalities affected by the Isolated Depression at High Levels (DANA) in different municipalities between October 28 and November 4, 2024, the occurrence of the circumstances referred to in the previous section must be proven to the Entity by submitting the following documentation:

a. Proof of income received by the members of the family unit:

-Income certificate, and if applicable, certificate regarding the filing of the Wealth Tax issued by the AEAT, or the competent body of the Autonomous Community, if applicable, for the last tax year.

-Last 3 payslips received

-Certificate issued by the managing entity of benefits stating the monthly amount received as unemployment benefits or subsidies.

-Certificate proving social wages, minimum insertion income, minimum vital income, or similar social assistance granted by the State, autonomous communities, and local entities.

-In the case of self-employed workers receiving the benefit for cessation of activity, the certificate issued by the managing body stating the monthly amount received.

b. Number of people living in the home:

-Family book or document proving registration as a domestic partnership.

-Certificate of registration (empadronamiento) regarding the people registered in the home, referring to the time of submission of the supporting documents and six months prior.

-Declaration of disability, dependency, or permanent incapacity for work.

c. Ownership of assets:

-Certificates of ownership issued by the Land Registry for each member of the family unit.

-Deeds of sale of the primary residence, as well as the deeds of constitution of the mortgage guarantee and its subsequent modifications, and other supporting documents, if any, for the rest of the personal or real guarantees established, if any.

d. Responsible declaration regarding compliance with the requirements to be considered in a situation of vulnerability.

The NCBP could be applied for until 12/31/2025.

Currently, you can only apply if you are an individual residing in any of the localities included in the annex of Royal Decree-Law 6/2024, of November 5, which adopts urgent response measures for the damages caused by the Isolated Depression at High Levels (DANA) in different municipalities between October 28 and November 4, 2024. You may apply for the alternative measures of NCBP 2022 until June 30, 2026, if you can prove you meet the eligibility requirements.

To do so, you must go to your Abanca branch, or if you prefer, to any branch of your choice to get more information and start the process.

To continue with the process, you will need to sign the Application Form provided at your ABANCA branch, submitting all the required documentation (including the Responsible Declaration regarding compliance with the requirements to be considered in a situation of vulnerability).

If you have contracted Mobile Banking or Online Banking, you may be able to sign the NCBP 2022 Application Form and Responsible Declaration remotely.

The submission of all required documentation, together with the Application Form, is an essential requirement to begin processing your request. Please make sure you attach everything correctly.

Once the request has been made, and it has been verified that you have attached all the required documents and that the eligibility requirements are met, there will be a period of 15 days to formalize the measures.

If you meet the subjective conditions to be considered in a situation of vulnerability, you may opt for one of the measures indicated above. The measure you choose must be formalized by public deed, signed before a Notary by all parties involved in the operation. The Amendment Deed must be registered in the corresponding Land Registry. The registration of the deed in the corresponding Land Registry will have full effect, if applicable, against intermediate registered creditors, even if their consent is not obtained.

All expenses arising from the formalization before a Notary and the registration in the corresponding Land Registry of the Amendment Deed covering the selected measures will be borne by the Entity.

Before the formalization of said Amendment, the Entity must provide you with:

(i) Simplified information about the alternative measures you can choose to amend the conditions. This information will at least include the legal and economic consequences of the different amendment alternatives offered; and, if applicable, the conditions of the extension of the payment protection insurance or loan amortization insurance that was initially contracted with the loan for which the amendment is requested.

(ii) Proposal for Amendment of the loan, once the alternatives have been studied and you have firmly chosen one of them.

These documents will be provided to you free of charge on a durable medium by any means, including electronic means and online banking services if you have them.

The NCBP 2022 application will be effective when you provide all the required documentation and it is verified that you meet all the eligibility requirements.

For example, if you submit the application along with the necessary documentation and it is verified on June 24 that you are eligible by meeting the criteria, the next installment you pay, considering the new measures, provided the loan is up to date, will be July's.

We will promptly inform you if you meet the requirements and can benefit from the alternative measures provided in NCBP 2022, or, if not, the reasons why you cannot benefit from them.

The improper application of these measures will mean that:

• You will be liable for damages, as well as for expenses generated by the application of the alternative measures, without prejudice to any other liabilities that may arise from your conduct.

• The amount of damages and expenses may not be less than the benefit unduly obtained by the application of the regulation.

• You will also be liable if you voluntarily and deliberately seek to place yourself or remain in the condition of an eligible mortgage debtor at risk of vulnerability in order to obtain the application of these measures, with the Entity with which you have the loan or credit being responsible for proving this circumstance.

The formalization of the contract by which any of the measures adopted under NCBP 2022 are established will not be subject to the provisions of Articles 10, 11, 12, 14, and 15, and section 2 of the first transitional provision of Law 5/2019, of March 15, regulating real estate credit contracts.

The formalization of the contract by which any of the measures adopted under the NCBP 2022 are established will not be subject to the provisions of Articles 10, 11, 12, 14, and 15, and section 2 of the first transitional provision of Law 5/2019, of March 15, regulating real estate credit contracts.