The situation of the Spanish real estate market distills a market full of opportunities. The years of the drought of credit and mortgages with inaccessible requirements are behind. Along with the drop in the price of the square meter, the war of prices of mortgages experienced between 2015 and 2016 has left a panorama full of possibilities. There are many people who start thinking about buying a home and wonder about those mortgages that financed the entire purchase. Are there still 100% mortgages?
Do they exist or not?
The short answer is yes, although the full version includes some “buts “. Yes, it is possible today to sign a housing loan with 100% financing. However, these are products that we will not find labeled with big letters in the entities’ showcases, like before the crisis. It was precisely in the explosion of the real estate bubble when it was possible to appreciate that this type of loans came to have a delinquency rate that multiplied that of the normal mortgages. That is, the risk of default on a 100% financing mortgage is greater than that of a normal mortgage.
On the other hand, this does not mean that they disappeared from the map. Mortgages 100% have seen their scope reduced mainly to mortgages for bank floors. Given the ballast that puts the accumulation of housing in the portfolios of banks, the entities will be willing to improve financing conditions for the external real estate. Among these improvements, we can find a higher percentage of financing.
Mortgages 100 can also be contracted by those people who have a level of liquidity and a stability to work bombproof. Precisely, if we can convince the bank of the reliability of our payments, the risk of default will be less and we can access greater advantages over our mortgages: either by requesting more capital, either because it has a lower interest or through 100% financing on the sale.
However, a product that seems to have completely disappeared are 100 mortgages plus expenses, mortgages that could finance up to 120% of the value of the sale, by including a higher amount to cover the cost of deeds (now in litigation). ) or for a possible reform that took place when entering the house.
How are mortgages 100%?
Removing the main fact that this type of loan increases the limit of financing that we can get for our home, mortgages 100 are practically the same as mortgages to use.
As differences, we could point out that the total financing mortgage loans can offer a term of up to 40 years, higher than the usual 30. It is also possible on some occasions that we are forced to take out payment insurance as a requirement of the entity to guarantee the payment of the installments, given that it is a product with a higher risk.
Despite the above, mortgages that only finance up to 80% can also extend the term to 40 years, as well as imposing the same level of connection , so if we can avoid increasing that 20%, we will be hiring a loan conventional mortgage that will be cheaper, is requesting a smaller amount of capital.