Mortgages under 36: with the Sostegni bis, the state guarantee leads “young” mortgages to finance 100% of the price of the house. Banks enter the field
In the last few days, the first products of mortgage for under 36 which, thanks to the state guarantee raised to 80% by the decree Support bis, manage to finance 100% of the house price with attractive rates. A type of credit with respect to the value of the property (loan to value) that has not been practiced for years and until now reserved only for the few who could afford it, after taking out expensive insurance. This is how the strengthening, wanted by the Government, of the Guarantee Fund on First Home Loans handled by Consap which, until 30 June 2022, will grant young people under 36 with Isee less than 40 thousand euros coverage equal to 80% of the principal amount in the event of a loan with loan to value above 80 percent. This measure is accompanied by a package of tax exemptions, but it is the adhesion of the banks that makes the whole operation really concrete: the new products, and others arriving in the coming weeks, offer a 100% loan to value, albeit with some limitations, and thus make the purchase accessible of the first house even for those who cannot cope with the advance of 20% of the capital.
In particular, Intesa Sanpaolo launched two new 100% products for mortgages not exceeding 250 thousand euros: the first, with a Consap guarantee, offers an extremely competitive fixed rate (1.05% at 20 years), in addition to the free investigation and cancellation of other recurring expenses; the second, for under 36 with Isee over 40 thousand euros, who is offered a loan to value at 80% and the cancellation of the substitute tax on the loan. Unicredit comes with a more expensive product, also with a loan limit set at 250 thousand euros (on a 20-year mortgage of 100 thousand euros, the Taeg is 1.61% in the case of a variable rate, 1.66% with the fixed). Also Crédit Agricole sets the 100% fundable ceiling through Consap at 250 thousand euros and offers only the variable rate with a double product: one insured and therefore discounted, the other uninsured (for 240 thousand euros at 20 years, the Taeg is respectively 0.9 % and 1.38%). But other institutes are considering presenting ad hoc products in September. Eg, Monte dei Paschi (which Unicredit is now interested in) announces that “a dedicated product with warranty will be released shortly Consap to 80% which will allow the loan to value to be raised to 100% “. Banco Bpminstead, he is confident of evaluating the launch of a specific product from September onwards.
“Up until now, the supply of 100% mortgages was very small,” he says Alessio Santarelli, the general manager of the Broking division of Mortgage Online, “And banks often ask for what is called mortgage insurance, which has an additional cost, to grant them.” Formally 215 institutes have already joined the fund but in practice some steps are necessary: the technical implementation of the tax exemption on loans; the need to define different credit policies internally. Some, like Bper, advertise the “Consap mortgage” but reserve the right to evaluate the increase in the loan to value over 80% on a case by case basis. Or there are those who have not yet joined, but still go in this direction. The Young mortgage from Mediolanum, for example, it is aimed at under 35s (for a maximum of 300 thousand euros) with loan to value up to 90% and for August there is a promotion that allows you to reach 95% with a discount of 10 basis points. In addition, the spread decreases every 5 years by 0.15% if the payments are regular. Also coming from Bnl an ad hoc package for young people under 36 that provides a 20% discount on the preliminary investigation, even if the institute is still evaluating “the compatibility of the Consap proposal with internal operational processes”.
In the meantime, the State has tripled the endowment of the guarantee fund and in the coming months it is expected that “the new offers presented in recent days, some of them really aggressive, will drive and push other institutions to propose solutions with 100% loan to value % ”, He adds Santarelli. The online portal that aggregates the mortgage offer reports that in the days immediately following the launch of Intesa Sanpaolo products, requests for under 36s grew by 7.4% (equal to 39.4% of the total). In short, the mortgage market for young people seems to change course. From 2007 to 2020, the percentage paid to people under 34 fell from 40.2% to 32.5% (data Bank of Italy). Since the beginning of this year, however, Mortgage Online it recorded about 7 million searches for mortgages over 80% and a third came from young people. Even the First Home Fund is destined to expand: from its effective start in January 2015 to date, it has “guaranteed” more than 190,000 mortgage loans, 58% of which to millennials (young people between 20 and 35 years old) and today Consap records a net increase in practices started. In the first half of 2021 over 40 thousand, equal to almost all of those presented throughout 2020.