You mortgage without income justification
10.01.2006
í‰ste is the year of the mortgage revolution. In 2006, the offer of this type of financial products goes away to flexibilizar up to such a point that a person will be able to obtain a mortgage, the call â~sin justification of ingresos†™ for the one that it is possible to obtain up to 40 % of the value of appraisal of a housing in spite of only presenting the ID card and an income declaration. It is a question of the showiest product of the year, but not the only one, for the Agency Negotiator of Bank Products, a financial broker dedicated to the mortgage intermediation, which has signed agreements with entities that as a whole represent more than 90 % of the Spanish credit market.
Apart from the mortgage without income justification, the Agency Negotiator gives for fact that the period of the loans to acquire a housing are going to get longer [more than 50 years], this way - how the age comes across the one that the petitioner will stop paying [Superior at the age of 80]. Also, he foresees that the payments protection insurances are promoted and that there pop in strongly the credit insurances, which will allow to do without guarantors in a high number of cases, on having offered more than 110 % of the value of appraisal of the housing. That without relying on that the refinancings to reunify debts will be much more lax, up to offering 95 % of the value of appraisal of the residence; and with that the lack periods [term in which it is left of paying the quota] are extended up to three years, or the five for the youngest clients.
Such is the case of the mortgage bridge, or mortgage easy beginning, indicated for those who change of house. The innovation, according to the Agency Negotiator, will be to be able to change confronting only one he mortgages, and not two, as till now, with three ó five years of entire lack, according to the age of the petitioner.
Also the age will be important at the time of hiring an inverse mortgage, product destined for persons older than seventy years for which they will be able to mortgage housings in property in order to obtain a monthly sum until now of the death, after which the heirs will be able to confront the payment of the generated mortgage. This financial broker does not doubt from that in the mid term inheritable mortgages will arise, already existing product and with certain tradition in other countries.
The Agency Negotiator quotes like factors to explain this mortgage revolution, factors as a rhythm of slower growth of the real estate market; interest rates to the rise; the irruption on the immigrants' market with stable labor situation; and the good march of the Spanish economy.
So many mortgage happiness contrasts with the repeated warnings of the proper Spanish Mortgage Agency (AHE), which has made public recently a note in which he prepares against the real interest risk [if it raises the price of the money] in countries like Spain, where the practical totality of the mortgage credit is signed to variable interest.
Source: elconfidencial.com
The risk of the increase of the quotas in the mortgages
06.01.2006
A study of the Spanish Mortgage Association (AHE) published today attracts attention on the risk that the annual quotas of the mortgages hired from the year 2002 could increase up to 1.250 euros in the short term if the types keep on rising in the EU.
The increase in the half and long term might reach 2.500 euros per year, in the case limit of which the indicators of reference to the calculation of the mortgages in the EU reached his maxima placed in 6 %.
The study supports that the constant price reduction of the costs of the mortgage financing in the last years has made “lose the conscience” of the risk related to the interest rates, even in Spain where enormous most of the mortgages are hired to variable types. The AHE remembers that the recent increases of the euribor will provoke increases of between 10 and 30 monthly euros in most of the mortgages, but it tints that the current amortizations of the mortgage debts hired before 2004 it is still lower than his initial cost. Even this way - the AHE asks the families to take in consideration these risks before deciding the buy of his housing.
Source: americaeconomica.com
Not round to the evolution the mortgages
04.01.2006
Next I include a letter of a reader of 20minutos that has no waste on the current situation of the mortgages.
I mean not to the mortgages in so long term.
Close to 75 % of the Spanish they are enduring enormous difficulties to face to the high cost of the housing, and more when the wages increase sometimes is below the IPC.They inflate us to taxes, inflate the prices of the products and it is time for the Government to arrange measurements and that these are fulfilled, that they protect the citizen of builders' abuses, banks and up to public organisms.
An increase of the mortgages of between 25 and 30 euros / month supposes a big effort for economies which wage increases do not turn out to be increased in the same proportion.
