The risks of mortgages for first home
The Spanish Mortgage Association warns that 93.24% of mortgage loans contracted last year were variable rate referenced to 6 or 12 months, with only 0.62% of subscribers to fixed rate mortgages.
The association says that the greatest interest rate risk relates to first home buyers in the first access and with incomes below the national average. They could see their share increased to a maximum of 34.8%, while for Standard loans with an income level above the average expected the maximum increase in the quota would be 24.6%. In addition, Madrid is the autonomous region with an increased risk of price hikes in contributions, followed by the Basque Country and La Rioja, with Extremadura in the polar opposite.
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Loading ... Written by Carlos Lopez on April 20, 2006 with 1 comment.
# 1, aa
Rising interest rates will raise the quota by 20% -30% to review their mortgage in June-July. Several thoughts:
1 .- Is it the people aware of this? Are some governments to inform them?
2 .- What measures are taking these owners? Are you taking any steps savings or reduction in consumption? What will happen if they can not pay the fees go up when?
3 .- Once you upload quotas and the money of households can no longer go to the consumer, what will happen to the businesses they no longer receive that consumer spending?
4 .- GO TO 1 .-