100% mortgages on the first house : with the reopening of credit by the banks, this formula reappears on the financial market. The profile of this modality is addressed above all to the use of young people (between 30 and 40 years of age) This is not an absolutely innovative financial formula on mortgage loans, or rather a consolidated banking instrument that has fallen into disuse until recently.
This mode of financial relationship was in fact introduced several years ago, more precisely at the time of the real estate boom. During this period the banks gave loans to families and individual citizens more easily.
The return of 100% home loan
With the crisis of the financial market and of the sales and purchases, mortgages with a 100% formula have been gradually withdrawn from banking institutions. In fact, on the card there are considered, from banks and financial institutions, credit formulas that are too risky and burdensome. Today, in the face of an increasingly large mortgage offer, and by virtue of greater credit availability by the institutions, mortgages with 100% coverage return. Not all of these mortgages account for the total amount as announced: many of these cover more than the excess of 80% of the total cost of the living space.
100% mortgages: a risk for the bank
In “classic” loans, the customer usually pays a part of the capital (in variable percentage according to the offer), and the remainder is financed by the bank: the return is modulated with a specific repayment plan. We understand that a customer who needs to cover the entire amount of the property at the time of purchase does not have strong guarantees, if the payroll does not, and does not have good liquidity. For this reason, there are few credit institutions that offer mortgages with this formula: high risk for zero capital
So what rules put in place the banks that practice this formula? It ‘obvious that, with a high risk margin compared to a canon mortgage loan, banks that offer this mortgage usually exercise a higher spread. The average spread value applied to 100% mortgages is around 0.5%, up to 1%. 100% mortgages are characterized by a higher spread value, compared to a greater risk to which the bank exposes itself to the contractor.
100% mortgages: which credit institutions offer them?
There are three main institutes that have recently reintroduced this formula. In general we stress that this loan profile is often aimed at a young age group, whose age is between 30 and 40 years on average.
Here are the three main offers:
- The yobank institute proposes a first home loan, guaranteeing an amount equal to 100% of the cost of the building.
The formula is exclusively addressed to customers under the age of 35: it is not applicable if the mortgage is jointly with a spouse of the same age or above.
- The 100% mortgage of the Unicredit institute is instead addressed to those under 40 years of age.
Even Unicredit, like the Intesa group, applies a formula corresponding to 100% of the value of the property, activating the so-called “Guarantee Fund for first home loans”.
The spread applied varies according to the customer’s credit profile.
- Among the other banks offering a loan of more than 80%, Credem finances up to 95% of the minimum value between technical expertise and value of the purchase and sale.
The spread is set at 2.95% for the floating rate and 3.10% for the fixed rate.
Percentage on this mortgage profile
Recall that the regulations governing the Italian land credit stipulate that a mortgage can not exceed 80% of the value of the property. This condition applies unless a surety policy is stipulated, which acts as a buffer for the remainder of the 80% limit covered by your bank.