The Bilbao Biscay Kutxa throws a mortgage to 50 years for minors of 35
30.12.2005
The rhythm of growth of the pay-off period of the mortgages is impressive. We are already speaking about mortgages of up to 50 years, that is to say, if a young man of 35 requests a mortgage of this type, he will stop paying it at the age of 85. To: It is really surprising!
On the other hand we have the life expectancy, them hombres:75′87 years. and them mujeres:82.08 years (information extracted from the INE for the year 2003). If for the date in which we are, ends of December, 2005, it has not changed this information very much, it would attract attention that they grant this type of mortgages to age men concerning 35 years. Perhaps the women have “some extra point”.
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The Bilbao Biscay Kutxa (BBK) has thrown a new mortgage with a pay-off period of 50 years, especially directed to the young people younger than 35 years, as he informed yesterday the Basque financial institution.
This new mortgage, as he told the box, has the widest term of the market, allows to finance 100 % of the housing and the requested maximum capital can be up to 27 % top that in loans to 30 years. Also it offers a period of lack of five years, in which only the interests are paid.
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Next year the monthly quota of the mortgages you might raise 8 per cent.
30.12.2005
It is necessary to emphasize from the following article that if the review of the mortgage corresponds to you in the middle of year, you will notice a major increase in the monthly quota.
In the current exercise, with the placed Euribor something over 2,3 per cent of average, the monthly quota of a mortgage for 120.000 euros to twenty years has been located concerning 625 euros, while next year will amount to nearly 680 euros, when the index rises to the environment of 3,2 per cent.
This increase of approximately 55 euros a month, 625 euros in the set of the year, will suppose a monthly increase superior to 8 per cent, much over 2 per cent who calculates that it will raise the inflation and, especially, the wages and the income of the families.
The mortgages refinancing will increase progressively
27.12.2005
The number of mortgage refinancings (subscription of a mortgage that covers other one previous to the one that other previous debts can add to themselves) there will grow in 2006 to a rhythm of 27 per cent, according to estimations of the Agency Negotiator of Bank Products (ANPB), broker financier dedicated to the mortgage intermediation.
Already in 2005 the increase of this type of operations, chosen especially by those persons with a mortgage who want to reunify his debts, it has turned out to be significant, but the increasing indebtedness of the families and an upward stage of interest rates will encourage this type of financial product. ANPB predicts also more competition between the banks.
Source: elcorreogallego.es
Mortgages of 45 years?
26.12.2005
The mortgages of 40 years exist already. But the banks and boxes are already thinking about major pay-off periods due to the increase of the types and the continuous increase of the housing.
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Ausbanc prevee an increase of the slowness on having raised the interest of the mortgages
26.12.2005
The increase of the interest rates, although minim, it will reverberate in the economy. Ausbanc, association that integrates the users of the banking institutions, augurs that the lists of bad debts will increase owing to the increase of the mortgages, since, he assures, the quotas which they face the families are very exact and any change, for delicate that is, it can affect perceptibly to the home economics.
The Ausbanc delegate in Malaga, Alfredo Martí-nez, added yesterday that the consumption can suffer the first consequences, since it will stop wearing out in free time and other products that are not of the first need.
Martí-nez sees difficult that a family could lose his house for not paying the mortgage, since it is a question of the first quota that subscribes every month, but, “in this society so bancarizada, it is possible to allow attending to other payments, like the letters of the car, of domestic appliances or of some buy realized with credit card”, he added.
In any case, the Ausbanc delegate in Malaga did not want to make to jump the alarms and recommended to keep on hiring mortgages to a variable interest. “Precisely there are the banks those that encourage this alarmism so that a migration happens from the rates of variable interest to the fixed ones”, he estimated.
Source: laopiniondemalaga.com
They throw the Due Mortgage. Destined to acquire a housing and to reunify debts
22.12.2005
The advantage of this new mortgage loan of the financial intermediary is that the quotas, during the first three years they are predetermined; that is to say, the client knows what the charges of his loan will be and his budget can fit, which provides to the client a calmness and a safety that with other loans would not be possible to manage. From the fourth year the quotas adapt themselves in the term and to the remaining capital.
The term of this loan is of up to 30 years, with a financing of up to 100 % and the amortization of two quotas a year without cost.
Source: acceso.com
What would suppose the mortgages non-payment
21.12.2005
Blas Wearing shoes, ex-president of the National Commission of the Stock market (CNMV), has commented recently on what can suppose the non-payment of many mortgage loans.
Blas Wearing shoes exhibited that without a tall number of borrowers it cannot assume his debts, the banks will not be able to sell the real estate due to the buyers' scarcity.
Also, I indicate that many persons with debts live over his possibilities.
The mortgage loans in the EU are equivalent to 40 % of the community GDP
17.12.2005
The volume of mortgage debt in the EU is equivalent to four trillion euros, what he supposes close to 40 % of the Gross National Product community (GDP), affirmed today the governor of the European Central Bank (BCE), Jean Claude Trichet, in a speech in the University of Kalsruhe.
Source: Europe Press
The OCDE criticizes hardly the mortgages commercialization to more than 30 years
15.12.2005
The duration of the mortgages that are commercialized in Spain is excessive, she has affirmed Confidential Claude Giorno, responsible for Spain of the economic team of the Organization for the Cooperation and Economic Development (OCDE).
Giorno refers to the fashion of the mortgages to more than 30 years †“someone come even to the 40 - that already offer to young people entities like the Santander, BBVA, The Caixa, Box Madrid, Caixa Catalunya or Caixa Gallicia. It is necessary to bear in mind the risks that suppose these mortgage loans and to be prudent, warns. The families are hiring these credits attending on the monthly quota that they pay and not so much to the entire quantity of the mortgage or in the term of the same one. Thus the Spanish can acquire housings that, of not being for these period, would be unattainable. In the current change of tendency, with the types rising, this turns out to be very dangerous, point out the experts.
Prudence advises also the Spanish Bank, in the development of these more flexible new mortgage products. In his half-yearly report on financial solvency, the issuing institute includes an extensive warnings paragraph before the new stage that is opened for the mortgage credit. If the banks, boxes and credit cooperatives or his clients lower the custody - in the control of risks, the first ones; in the knowledge of the acquired commitments, the second ones - the products diversity can end up by affecting to the financial stability and annulling the profit of well-being proceeding from the existence of a more finished credit market, reports Colpisa.
The economic team of the OCDE is not foreign to the distortions of the Spanish economy. Spain is too dependent on the sector of the construction, makes sure Giorno, that he foresees a strong growth of our economy in 2006 and 2007, but that he proves to be convinced that the real estate market will suffer a shutdown. It is difficult to judge when the slowing down will take place, and if this one will be moderated or brutally, he mentions.
Source: The confidential one
As recommendations, the chief of the economic bureau dedicated to our country in the OCDE proposes to encourage the market of the rent, very little developed in Spain compared to the rest of the Euro area: It would be suitable to suppress progressively the fiscal subsidies to the buy, to regulate juridically the rents at the time that it becomes possible to attract towards this model to the most modest revenues.
The Spanish market, one of most overvalued
The high prices reached by the apartments in Spain it is different of the reasons that the OCDE uses of the hour to ask for precaution in the hiring of mortgages of more than 30 years. Spain has the most overvalued housings of the developed world, only behind Australia and Great Britain, as he gathers the last number of The Economist.
According to the prestigious British publication, which report is based precisely on estimations of the OCDE, the price of the apartments is overvalued in close to 50 % in Australia, in more than 35 % in Great Britain and in more than 25 % in Spain. Behind our country there are located Denmark, Holland, Ireland, France and New Zealand, also at levels of overvaluation superior to 20 %.
The Caixa offers mortgages to 40 years for young people with lack of 5 years
10.12.2005
Caixa Catalunya has thrown a new mortgage for young people to 40 years with a term of initial lack of capital of up to five years, on the condition that the holders do not overcome the age of 32 years, as he informed today the savings bank.
The clients will be able to benefit from the system of increasing-charge depreciation of quotas that allows to increase them
annually according to a percentage agreed and established according to the term of the operation.
Thus the young people will be able to choose between fixed or variable type and he will be provided with a bonuses system in the interest rate of the loan according to his link with Caixa Catalunya.
The amount of the mortgages that are granted to 40 years will not be able to exceed 90 % of the expert value or of the price of sale of housing that wants to be acquired and his use will have to be destined for the first housing.
Source: finanzas.com
