Many consumers, despite having a good level of income, do not have enough savings to pay a percentage of the value of the home they want to acquire, so they apply for mortgages 100% financing. Banking entities, however, are not usually willing to grant this type of product, although there are certain cases in which they can finance the entire value of the property.
Mortgages 100%, almost exclusive for bank floors
Before the outbreak of the economic crisis, hiring a 100 mortgage, that is, a loan that covered the entire purchase value of the home was a fairly common operation, but after the hardening of access to credit, it is now more difficult to get these products. In fact, at the moment, banks could only grant mortgages 100% financing if we wanted to buy a floor of the bank itself or, to a lesser extent, if we had a perfect financial profile.
Therefore, if we decide to acquire a home that belongs to the bank, we will have more options to get 100% of its value. In addition, although the amount financed is greater, in many cases, we can enjoy the same conditions. For example, if we hire the Orange Sareb Mortgage from ING Direct, an interest from the Euribor + 0.99% will be applied (the first year we will apply a fixed rate of 1.99%) and we will not be charged commissions of any kind. In order to benefit from this offer, it is essential to have the payroll domiciled and to take out a home insurance and a life insurance policy, which is mediated by the entity.
Of course, we must be clear that the fact of buying flats from banks does not guarantee us to be able to get a mortgage 100. It is true that, in these cases, banks are more willing to negotiate the financing of more than 80% of the value of the property, but the amount of money they will offer us will always depend on their risk criteria.
To take into account when contracting mortgages 100% financing
Another important point to keep in mind before ordering a 100 mortgage is that hiring these products is a greater risk for both the bank and the consumer since the amount financed is higher. In addition, these mortgage loans have other characteristics:
- Mortgages at 100% usually have the same conditions as the rest, but in the long run, they can be more expensive. As the amount financed is higher, interest is accrued on a higher capital and, consequently, the cost of the mortgage is higher.
- The term offered may be longer, but that is not always convenient. Remember that the longer the amortization period is, the more interest will be generated, so the mortgage loan will be more expensive.
- The constitution and purchase and sale expenses are not included in the financed amount. Therefore, we must have some savings that allow us to deal with this item. Before the crisis, the banks did finance more than 100% of the value of the house to cover these expenses, but at the moment it is practically impossible to obtain it.