The 'basic' condition to get a mortgage: 39,000 euros saved before signing
The amount of the loans granted by the bank has fallen from 105% to 80% of the transfer value in a decade, although in one in ten cases the mortgage is still equal to the amount of the purchase
Any citizen - couples, single, divorced, widowed ... - who wants to ask for a mortgage with which to finance the purchase of their home has to overcome a filter not suitable for all types of people: it is necessary that they have reserved approximately 39,000 euros, on average, to sit down and talk to their bank and get them to grant them the desired line of credit with which to complete the operation.
The latest economic bulletin of the Bank of Spain reveals that most of the mortgage loans granted in 2016 had amounts that were around 80% of the transfer value of the home. In fact, it is more than complicated for a bank to approve a mortgage below that limit, except in cases of client profiles with a lot of assets. Because for most of the population it is already an odyssey to buy a property in the current circumstances in which the bank requires them to have saved approximately one third of its value: 20% to deliver directly to the entity , and not have to finance it , and another 10% for taxesto turn off. Thus, to finance a purchase of a flat worth 130,000 euros -the most up-to-date average statistical amount-, it is necessary to have saved some 39,000 euros (26,000 euros to deliver directly and another 13,000 for taxes and fees).
The reality before the mortgage firm has changed significantly since the time of the real estate and financial boom that Spain lived through to 2007, although some embers remain in the banking market with mortgages that remain as high as the purchase price. of the housing that is financed. Until 2016, 9% of the mortgages were granted for the entire transmission price collected in the Property Registry, according to the last economic bulletin of the Bank of Spain where it analyzes the evolution of the loan on the value of housing since 2004.
This has been one of the issues that has caused most headaches among customers, whose mortgage debt has wreaked havoc in their pockets during the worst years of the crisis ; and also among the banks, for the delinquency derived from those flexible mortgage concessions in the years of growth. In fact, the Bank of Spain advises that the amount of a mortgage does not exceed 80% of the appraised value of the property, and if that relationship is contravened, the supervisor imposes certain requirements on the entity.
However, the percentage of mortgages whose amount is equal to or exceeds the transfer value of the home has been reduced considerably since the height of the housing bubble. The percentage of mortgages whose amount exceeded the purchase price has been reduced by 15 points since 2010. Because in years like 2006, half of the mortgages granted exceeded the price declared to the registrars, according to the Bank of Spain.
Part of the responsibility of that situation was given by the high valuations that were quantified in the real estate market, based on the expectations of growth in the future. In fact, between 2004 and 2008, appraisal values grew at a "higher" rate than that of sales prices. And, at the same time, from 2009 to 2016, there has been "a greater fall" in valuations than the real cost of buying a home.
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