After several years in which banks closed doors to credit for housing purchases, privileging only the contracts that affect the houses they owned (after the clients’ “delivery” because of the impossibility of compliance), there is a greater opening for the Housing Credit.
Banks Have Started Giving More Mortgage Housing
It is not only in housing credit that we see greater openness of banks. Also in personal loans and consumer credits. Never forget that the business of banks is to lend money. Several years without giving credit began to pressure their results .
Spreads Have Been Reduced
Despite the greater openness to housing credit, the spreads practiced by banks are still high. However, we have seen some banks with spreads from 1.70% -1.80% and the tendency will be for them to continue to shrink (although we expect to see no “crazy” figures from 2007-2008.
If we notice, the interest rate paid by the customer is calculated as follows:
EURIBOR + SPREAD = INTEREST RATE
It turns out that the cost of money for Portuguese banks is not equal to the EURIBOR. It is quite superior. Thus, the only way the bank has to pass its cost to the customer is by raising the spread charged to the customer.
Although the spreads are still high, the low level of the EURIBOR (close to 0.0%) may make the value of its performance lower. Being a reality, you should make a careful assessment so that soon you can not pay your installments (be aware that the EURIBOR will start to rise sooner or later).
If You Need Credit Research Different Alternatives
We always suggest that you create the habit of searching for all the information, researching alternatives and negotiating. Although it is currently difficult to get down the fees we are charged, this does not mean that it is impossible. So, look for all the information and visit several banks. Try to prepare your application process carefully . If you need to use the mortgage simulator housing.
And the Bank Houses?
Buying bank houses can be a good alternative for your dwelling. However, you should consider that buying a house from the bank implies that you will not have great bargaining power in reducing the purchase price as well as the offer in more desirable areas is very reduced. Also pay attention to the various products that are offered to you and that can greatly increase your monthly payment – take a look at APR!