BBVA throws a mortgage destined for young people who look for house
09.04.2008
The Bank BBVA has announced recently the throwing of a mortgage for young people that, for the first time, applies an interest below the euribor. The new mortgage blueBBVA has an interest rate of the Euribor less 0,25 points the first year and has for an object the young people who are provided with less resources and want to buy his first housing. The entity has increased the limit of the bonus of 1 % on having formalized the mortgage, from 1.500 to 3.000 euros. On having combined two helps (the type of the euribor - 0,25 % and 1 % of bonus), the saving in the monthly quota of the mortgage reaches the 225 for an amount for 150.000 euros.
BlueBBVA is a mortgage directed to the young people that combines financial and not financial offer and that has allowed the entity to receive more than 500.000 new young clients from his throwing one year ago. BBVA has raised his market share in 1,5 points in this segment, up to 10 %. The entity anticipates one year, 2009, his target to incorporate a million clients foreseen for 2010, announced yesterday Juan Asúa, the director of BBVA Spain and Portugal, in a press conference in Barcelona. To benefit from this loan, the value of the housing has to be equal or lower than 200.000 euros, the amount of the mortgage must not overcome 150.000 euros and the income cannot overcome 1.500 monthly euros, if it is a question of a holder, or of 2.500 euros if they are two holders. In addition to the interest rate, the holder benefits from a bonus of 1 % on having formalized the mortgage, with the limit for 1.500 euros, with what the entire saving for the holder of this loan promotes to approximately 225 euros a month.
For the young people who do not fulfill all the requisites and who are provided with major income, the entity has raised the bonus of 1 %, on having raised the limit for 1.500 euros to 3.000 euros. The mortgage is provided with all the advantages of the Mortgage blueBBVA, as it is the flexibility of term, quota and lack between others, this way - how a competitive interest rate from the second year that can come to euribor more 0,49 %, according to the link. The entity promises to answer in 48 hours.
Linkage | BBVA
The OCU qualifies of “aberrant“ to force the families to mortgage other goods if the price of his housing falls down
07.04.2008
The mortgage situation is complicated increasingly. Now, to the landslide of prices of the housing one adds that the value of the real estate cannot go so far as to cover the mortgages that exist on the same ones. Due to the situation that appears, the Government, in favor of the financial institutions, it is preparing a decree to allow the banks to be able to demand from the consumers that they should mortgage other goods if the price of his mortgaged housing desmereciese of the initial appraisal in more than one 20 per cent. The OCU qualifies the measurement of “alarming, aberrant and unconstitutionally”.
This initiative appears in the decree that develops the new law of the mortgage market. The world supports that the mortgage law was done to low the price of the changes of these loans, but his making hides this measurement.
In the said decree it is possible to read the following thing:
“If for market reasons or for any other circumstance the value of the mortgaged good desmereciese of the initial appraisal in more than 20 %, the financial institution creditor, crediting it by means of appraisal carried out to his instance, will be able to demand of the debit mortgager the enlargement of the mortgage to other sufficient goods to cover the relation exigible between the value of the good and the credit that it guarantees”.
A more and more difficult situation
With previously explained the citizens can turn in a situation in which the price of his housing is lower than what they owe of mortgage, for what they might allow paying his credit or even come to the bank office to deliver straight the keys of his house. And here - the problem would come for the borrower, who would meet a good in his power that does not cover the debt of the client.
Unlike what it happens in the United States, where the mortgaged ones only answer before the financial institution with his housing, in Spain the banks can come to the personal guarantee, impeding other goods or even the salary of the bad debts, but the experts make sure that it is very difficult that a bank resorts to the personal guarantee of a client to insure itself the payment since value has very little.
The decree tries of to protect to the entities before this situation, therefore the Consumer society (OCU) has accused the Executive of “of safeguarding the interests of the banking at the cost of the users”.
You complain of the consumers' associations
The spokeswoman of OCU Ileana Izverniceanu, qualifies of “alarming, unjustly, aberrant and unconstitutionally” this measurement. In declarations he has assured to Europe Press that, of confirming to him this information, “it would be a catastrophe” because “there are many families that are already drowned and do not have from which to extract other goods to mortgage”.
“It is a question of a unilateral modification of a contract agreed at large between a bank and his client. And what it is not possible to do is that an assessor decides to order a bank to a housing to which it has granted a loan and force the mortgaged consumer to mortgage other goods at the price of 20 per cent. To do this of a unilateral form is unconstitutional”
mortgage loans not to buy housings
07.04.2008
Curiously there are increasing the authorizations of mortgage loans that do not take as a purpose to acquire a housing, specifically they have increased one 15,1 % at the end of 2007.
40.739 million euros were the entire amount reached at the end of 2007, 35.392 million euros that registered at the end of 2006, according to information of the bank of Spain, gathered by Europe Press.
The information contrasts with the piled up whole two years behind, when the mortgage loans that took as a destination the buy of goods different from the housing supposed 25.834 millions, what supposes that the volume has increased 57,6 % in only two years.
Specifically, this formula is recounted on the credits granted to the families that use the housing as a guarantee but they are assined to finance another type of products, which not at all have to do with a building, like investing in business, buying a new vehicle or financing the holidays.
A spokesman of the Users' Association of Banks, Savings banks and Insurances I indicate that some families choose to recharge the mortgage of his housing to finance consumer goods, a not recommended practice.
Initially, this formula seems beneficial, because there are avoided the expenses of constitution of another loan and the interest rate is more under that that of a credit to the consumption, but with the time it ends up by being paid more, with what in the end existenmás risks.
Adicae cheers the Spanish families to “to exercise up the culture of the credit with responsibility” and not to recharge the mortgage, unless the relation between income and expenses is comfortable. In case of problems with the ecomoní - to servant, this formula is not advisable, because the housing puts itself in game, anything that does not happen of so direct form when one does not pay the quota of a credit to the consumption.
Route | Finance
New climb of the Euribor after two months of descents
01.04.2008
The average March level has remained concentrated on 4,590 %, what means an increase of 0,241 points with regard to 4,349 % of last February, according to information of the Mortgage Association of Spain.
The Euribor is the index of reference to the review on behalf of the mortgages to variable interest rate in our country and this index started the year in 4,73 %, the highest level from hací-a seven years, although it was controlling itself in January and February, with 4,498 % and 4,349 % respectively.
The March fact will be confirmed officially by the Spanish Bank in the middle of this April.
In interannual terms, the increase of the Euribor is 0,484 points with regard to March, 2007, when it was located in 4,106 %, what supposes that the holders of mortgages that should check the interest rate of his credit according to his value of March an increase for 42 euros a month in the average mortgage.
The National Institute of Statistics fixes the average mortgage in an amount for 150.000 euros to 25 years and a differential of half a point on the Euribor. With these premises, the monthly quota of the credit would go on to 884,77 euros, opposite to 842,80 euros that he pays now.
If the finished exercise is cited as an example, the Spanish families will have to pay out in 2008 approximately 512 euros more than in the set of last year for the payment of his credit. Nevertheless, if the review of the credit is half-yearly, the mortgages will experience a minim lowered in his monthly quotas, since the type has gone down in 0,134 points.
