“Nowadays are 100% mortgages available? “Be totally sincere,” I ask, seriously, David Espiago, banking business director at Housfy Hipotecas. “Yes, we continue to process mortgages with 100% financing,” he admits. A relief for many, right?
Espiago tells me “with total, total, total sincerity” that today they are closing many fewer 100% mortgages than 5 or 10 years ago, or even compared to last year.
Even so, it estimates that almost a quarter of the mortgages processed today by its brokers are 100% financing or even more (for renovations or to pay the ITP).
In general, banks, to grant financing of this caliber, prefer that the home have a value greater than 200,000 euros or that the buyer have a guarantee.
The financial profile? Well, it is not necessary for someone to be “super-solvent,” he says, which will also reassure a few applicants, but it will be necessary for them to be able to afford their mortgage payment, which, of course, will be higher the more capital they have to repay.
“Financing 100%... is no longer enough for all profiles,” admits Espiago, who recalls that “the increase in interest rates” has caused the debt ratio to exceed 40% for many. Banks tend to feel more comfortable working with profiles whose fees represent between 30% and 35% of their total income at most.
As a predominant profile, these mortgages are requested by people who have little savings, or who only have to pay the expenses and taxes associated with the purchase of a house.
“As you see, for two people who buy for 240,000 euros, who earn 2,630 euros between them and have been in their company for at least a couple of years, we can now offer them a mortgage of 240,000 euros in capital,” Espiago announces.
