Mortgages in 2019
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In addition, you will find practical information to know the requirements that banks require to grant a mortgage in 2019 and you can ask our mortgage experts for free in this forum . And do not hesitate to consult our blog whenever you look for current mortgage information and analysis related to the economy and personal finances.
Mortgage market in 2019
In this section we will analyze and update how the mortgage market develops in the year 2019. At the beginning of this year we are waiting for the consequences that the new Law regulating real estate credit contracts may have on the conditions of mortgage loans; on the other hand, it is interesting to see how the Financial Standing will evolve and its direct effects on the interests of mortgages at a variable and indirect rate under the conditions offered for fixed rate mortgages. This reform of the mortgage regulations improves the position of the individual person mortgage client, increasing the transparency requirements of the banks and mortgage brokers, in addition to increasing the fees that must be unpaid so that the mortgage guarantee can be executed, among other changes that we analyze in our blog This legislative improvement is likely to translate into more expensive mortgages (or rather, mortgages as expensive as in 2018) and somewhat more severe risk criteria. The work of good mortgage consultants in 2019 should be valued and provide real professional help for clients seeking mortgages.
There is an issue that can cost a lot of money to Spanish banks, between 7,000 and 44,000 million depending on the scenario taken into consideration. We are talking about the possible abuse of IRPH, the most expensive reference that was placed instead of the Financial Standing. Depending on the ruling of the DBC regarding the IRPH and the amounts that are eventually claimed from the Bank, it is a milestone that can clearly reduce the rate of granting mortgages and increase the cost at which they are offered.
Regarding the interest rate forecasts for 2019 , we can comment on the forecasts of the Good Finance analysis department in its quarterly investment strategy for the first quarter of 2019, in which they consider the reference rate of the Good Finance, You could experience your first rise «very late 2019 or in the first quarter of 2020, from the current 0.0% to 0.10%». And during 2020 Good Finance considers that we could see additional increases that would place the interest rate around 0.40% by the end of 2020. The translation of this monetary policy forecast into the basic reference type of mortgages , the one-year Financial Standing would be in the central scenario of -0.01% (annual average) in 2019 and 0.50% in 2020.
2019 can also be the year of the first mortgages of neobanks, if Blue Bank offers this type of products and finally fulfills its business plan to start operating in Spain. From the fintech sector may come the new banking competition in mortgage matters, although it is not likely that 2019 is the year of fintech mortgages , it still seems soon.
Requirements to get a mortgage in 2019
As it happened in 2018, in 2019 it will be very complicated to get a mortgage without savings. On the other hand, most mortgages will be granted at 80% appraisal. Some groups will have easier access or in better conditions, such as mortgages for officials. We explain in the article linked below the main points that they have in mind to know if we have possibilities of granting us a mortgage in 2019.
100% sales and 100% mortgages plus expenses will continue to be for profiles with clear job stability, often only available to clients who hire the services of mortgage intermediaries .
Variable rate mortgages in 2019
The forecast for 2019 is for the Financial Standing to rise, although it remains negative. It is not very clear that we are going to live a real estate bubble in 2019, but the economic forecasts are not to throw rockets, which means that the mortgage party will not be either.
It will be a year, predictably, of improvement in the rate of granting mortgages, an increase that does not seem to be at exaggerated rates. Regarding the reference conditions of the variable rate mortgage in 2019, we think it will be between a Financial Standing + 0.99% and a Financial Standing + 0.90% .
Fixed rate mortgages in 2019
Registration statistics for the third quarter of 2018 indicate that the contracting of mortgages at a fixed interest rate has continued to grow, reaching a new historical maximum with 40.73% of new loans and mortgages, leaving the contracting at variable interest rates in 59.27%, which practically in its entirety has used the Financial Standing as reference index (58.36%). In addition to knowing what factors to consider in order to contract a fixed rate or variable interest mortgage, in 2019 it is expected that the trend will be balanced, in values very similar to the end of 2018: 40% of fixed rate mortgages and 60% at type variable If interest forecasts do not vary too much, banks will begin to slow down in the granting of fixed-rate mortgages, but the demands for short-term results is not an incentive to stop granting fixed-interest credit in 2019.
As for the fixed rates in 2019, most likely they will remain at a nominal 3% in mortgages for solvent clients.
Look for only information or want to hire the best mortgage in 2019 , do not forget to request free and without obligation information to real estate credit intermediaries selected by Good Finance economists by filling out our form .