At the beginning of the economic crisis, in all areas, such as in the sale of real estate, the 100% mortgage was no longer granted as easily as it did when, thanks to the real estate boom , it had been introduced. This was granted to those who wanted to buy a house despite not having savings available but relying exclusively on a stable job.
For some time now, with the new opening of credit by banks, the 100% mortgage formula has reappeared. An extremely precious opportunity for those who want to buy a house but at the same time do not have the immediate availability of adequate economic resources. The amount financed, in this case, corresponds to the entire value of the property.
100% mortgage: the guarantees required
Considering what has been written so far, it should be remembered that the current legislation governing land credit establishes that mortgages cannot exceed eighty percent of the value of the property. For the remaining part not granted directly with the loan, it is possible to meet only by drawing up a surety policy , to cover that portion exceeding the limit set by law.
In fact, the credit institutions that intend to proceed with the stipulation of a mortgage, undertaking to transfer sums of money to fully cover the value of the property, do not implement everything without taking due information and precautions. Indeed it can be said that they are very cautious in disbursing this type of financing.
Banking institutions take this extremely thoughtful attitude because 100% mortgages are considered particularly risky , to the point that any lender also adopts specific prudent conditions. These include the increase in the interest rate applied on the loan and, as anticipated, the stipulation of the surety policy which covers the excess part compared to the 80% normally paid.
Obtaining a 100% mortgage however is not as difficult now as it may seem. Banking institutions offer more or less convenient terms, to be carefully evaluated together with an expert credit advisor.
100% mortgage: who can apply for it
Most of the requests for 100% mortgages come from young people, under 35 or 40, who wish to engage in the purchase of their first home. But before I put some economic resources aside in my job.
The most convenient solutions offer the applicant, if he prefers to not be aggravated economically during the month, lighter installments, because they are distributed over a longer mortgage term , even in 40 years . These solutions are designed to guarantee greater sustainability of the installment and also give the possibility of flexible management at a spread which, in this way, manages to remain average .
Of course, since it is still an investment, the banks only disburse the mortgage after perfectly analyzing the economic situation of the applicant. So check if there are suitable additional guarantees. This means that the borrower must prove to the lender that you have at least one double household income and a permanent job.
The involvement of a third person who can act as guarantor is often required: a family member, in most cases, ready to commit to pay the debt in case of the contractor’s insolvency.