Spanish mortgages 65% cheaper since 2007

The mortgage market is currently in a more moderate position. from their highs in 2007, the monthly mortgage payment has increased from 976 euros per month on average to 378 per month in the first half of 2014, record lows. according to a report tecnocasa and Pompeu Fabra University is another indicator is the ratio between moderate monthly fee, and income has gone from receiving more than 60% of salary to 24%, a percentage "ultraconservative"

Evolution of the monthly mortgage payment

The ratio between the monthly mortgage and monthly income of the mortgaged should represent between 30% and 35%, according to experts. before the explosion of the housing bubble this ratio exceeded 60% since 2009 but a sharp drop of nearly 20 percentage points in a semester is observed. tecnocasa as this gives that "banks abruptly began to apply the credit orthodoxy that should apply from the beginning"

Ratio between the monthly mortgage and monthly income of the mortgaged

On the other hand, the percentage of mortgage financing, is down 86%, highs in the second half of 2006, up to 67% of the appraised value of the home in the first half 2014 report tecnocasa and Pompeu Fabra University indicates that "a loan to value below 70% implies an extremely conservative attitude of banks as well as a clear attempt to reduce the risk in lending to these entities granted"

Regarding the terms of mortgages, the study concludes that since 2009 a marked to grant mortgages short trend. thus, for example, in the first half of 2009 the percentage of 40-year mortgages was 45%, while for the first half of 2013 this figure was only 8%, just half that in 2012 for the first half of 2014 this trend is even more pronounced because for that period only 2.2% of mortgages were granted him to 40 years, while 30-year mortgages accounted for 60%

Also noteworthy is the significant increase since the bursting of the mortgage bubble within 30 years. in the first half of 2014 they accounted for almost 37% of the total, while in 2008 barely exceeded 16%

Term evolution of mortgages granted

How does it work and what insurance cover about unpaid rent?

 

Where bank guarantees before or personal guarantors are asking, now formalize rental insurance for better coverins. This new formula for homeowners backs are covered against possible defaults, is an increasingly used alternative that has also served to stimulate the market and allow access to rental housing tenants to remain solvent, it had no economic capacity enough to enter in your financial institution a significant amount of money in the form of guarantees

and, what covers me? Well, firstly it is a filter to select the tenant. Before signing the contract the insurance company or the realtor who intermediate in the policy make a feasibility study to ensure that the candidate is solvent

After signing the lease, it is usual that the insurance covers the payment of rents due up to a maximum of 12 months, and in some cases, unpaid bills are ahead, although it depends on the insurance

In addition, many offer legal defense to the owner to possible civil or criminal disputes with the tenant. It is also common that protect against property damage and theft of the property of the continent that may be caused by the tenant

The cost of this insurance is typically between 3% and 5% of annual income, ie, to an apartment where the rent is 700 euros per month, would cost between 252 and 420 euros per year, points as the real estate agents in the Costa del Sol InmoLaSirena

When should report the default?

Notice is paramount when that occurs so that the legal department of insurance and make the appropriate arrangements present the eviction. Also, if that is not the default complaint no progress occurs

After exhausting amicably, and filed eviction and rent completed claim within 3 months duration, the insured may request the insurer a preview of all income and unpaid until such time exceeding the franchise, which is usually the month deposit

What if I report late? After 45 days from the date of default, the insured forfeits the advancement of the rents and until there is a judgment of eviction and housing recovers

An option upward

Insurance unpaid rent is gaining popularity among homeowners. In fact, six out of 10 tenants requires additional guarantees beyond the bond and the default policy is the most demanded and has grown more in the last year, according to data from the Spanish observatory rental insurance ( OESA) , and, it seems, are happy. nearly 70% of homeowners who entered into rental insurance renews what they value most are offering coverage (27%), cost (22%), speed of response (18%) and the tenant's credit report (12%)