Resurrection of the mortgage after the crisis
The financial and economic crisis had caused the mortgage to buy a house disappeared from the market. But now they have resurfaced by the entities need to slim its portfolio of ‘brick’.
We must recognize that there are still many institutions that offer mortgage loans for 100% financing to purchase homes, but there after 2010 which were wiped out.
‘revival’ of these mortgages has occurred because of the large stock of flats built by the banks. The urgency to dispose of these homes has forced banks to own real estate to offer good financing conditions, “explained from the portal specializing in mortgages.
This good news for prospective buyers is due to the urgency of the entities to reduce the supply of housing that accumulate. Although all banks and have this product intended for children under 35, not all here. Savings banks have been the first to dust off those products.
Although funding to facilitate access to housing must take into account that they are more expensive than standard mortgages to 80%. “When ordering a 100% financing bank is increasing the risk in granting the loan and that makes 100% mortgages are by definition more expensive than covering 80% of home value.
Usually ask for collateral, charge higher interest and require more insurance contract for granting warn. If before forcing banks to engage life and home insurance, now also claim unemployment insurance or payment protection.