Banks are increasing the amounts borrowed for housing loans at a time when families benefit from interest rates historically low, with the amount granted last December to the highest since 2011.
according to the latest data from the Bank of Portugal, in December 2015, new operations with credit to housing totaled 469 million euros, an increase from EUR 413 million in November and representing the highest level since May 2011.
This value seems to mean the beginning of a recovery in the housing loans market which gains strength if it is made a comparison with previous years. Doing the math, in 2015 banks lent an average of 334 million per month for home buying, and in 2014 the average value was 193 million and in 2013 was even lower, about 170 million.
Still, the end 2015 values in no way compare with those recorded before the financial crisis in years of intensive lending by banks.
Analyzed data Bank of Portugal between 2004 and 2007, banks lent more than billion a month for home purchases. In July 2007 was reached the record value of EUR 1.8 billion in mortgage loans only.
Although the values given now are far from those years notes a recovery, with the combination of consumer defensa Deco to think that this is the result of the banks are again more willing to lend money and the practice minor ‘spreads’ (the bank’s profit margin), the interest rate environment Euribor historically low and the market lease still not be in many cases, a truly viable alternative for families.
“There is some enthusiasm for the families to resort to mortgage loans, because in recent years was closed. But it is important that families do so with caution, “he told Lusa Natalia Nunes, Office of the coordinator of Support Deco over-indebted.
the official even said that continue to reach Deco” many families struggling to meet commitments credit “, mainly due to the decrease in income by unemployment, with situations of parents as guarantors, were called to secure the loans of the children.
the bad loans in the housing segment amounted in December 2015 to 2,480 million euros, similar amount to 2,500 million euros in the same month of 2014 and representing 2.54% of the ‘stock’ of mortgage loans.
As for the families who now want to hire credit, Deco has warned not to let delude by low monthly payments under the Euribor also low, and defended the importance of carefully assessing whether they can support the tuition when rates rise.
when banks do simulations for a housing loan are required by law to reckon, not only as would be the provision with interest rates at current values, but also with the rate one percentage point and two percentage points.
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