Banks No More Fear Lending, 100% Mortgages Are Back

30/09/2014 – El Economista

The latest updates indicate a constant rise in new mortgage approvals. And the nearly impossible has happened: some of them were lent at 100% of the value of a property. Two entities grant the loans for the total value and around a dozen include this option in their mortgages. Of course, in all cases they are tied to strict requirements and obligations.

Until now, the privilage was reserved only for foreclosures but now it starts to change due to more intensive assets transfers by Sareb and the arrival of investment funds that absorbed many real estate servicing branches of banks.

Moreover, banks like Santander or BBVA still offer these conditions for purchase of the homes traded in their offices and stands.

Ibercaja & Caja de Ingenieros

These two entites offer loans equal to 100% of the value of a property provided that the customer also accepts ‘high interest rates and loyalty products’.

Ibercaja’s mortgage called ‘Superhipoteca 2014’ is being lent for a 40-year term. The borrower shall place a salary deposit and three bills, as well as to buy several insurances and credit cards, maintain fixed amount on the savings account and ‘invest in a fund managed by the bank’.

Caja de Ingenieros sells the ‘Hipoteca Hogar’ mortgage, asking for the salary deposit, purchase of an insurance and any product ‘for over €3.000’.

Speaking of interest rates, Ibercaja applies 3% in the first year and 2% + Euribor in the following, while at Caja de Ingenieros it changes from 4.5% to 2.74% respectively.


Original article: El Economista

Translation: AURA REE