That the American crisis of the mortgages of high risk (“prevails”) has not affected the organizations Spanish, at least until the moment, is a reality stated even by the Bank of Spain. But it is not possible either to be denied, although they are the minuses, that in our country also exist mortgages “prevails”. Possibly with a measurement of the risks greater than in the United States, where the past year 29% of the mortgages were of this type.
Almost all the Spanish organizations deny to have mortgages “mainly prevails”, mainly because many commercialize these loans through “white” marks of the own company or one arisen by means of the grouping from several organizations, savings banks. But reality is that they prefer to grant these credits of high risk to try to solve one serious economic situation of a client, who can be conjunctural, instead of to have to put in a contentious little profitable length and.
The Santander, most transparent
The unique bank that has been publicly recognizing that there is “prevails” in Spain is Santander, through its vice-president and delegated advisor, Alfredo Sáenz, in the presentation of results realised for days. Sáenz declared abiertamente that “clear that there is “prevails” in Spain, is a question of pure common sense”. It is more, added that “the criteria by which a mortgage is considered “prevail” in the Anglo-Saxon countries can be applied to Spain perfectly”.
The business of mortgages “prevails” of the bank that Emilio presides over Booty is realised through his financier Santander Consumer Finance, to refinance or always to reunify the debt of weak clients. The volume of credit that is granted to these clients goes from a 45% of the value of appraisal of its house to a maximum of 75%, always based on the delayed payments whom it has and of the maximum ratio of indebtedness that it has with respect to his wage, established between a 40% and a 60% of its pay.
That is to say, the mortgage “prevails” of Santander Consumer Finance could at the most be of 45% of the value of the house if its monthly payment monopolizes 60% of the pay of the client. The case more extreme than contemplates of concession of this type of credit is for a client with four operations of non-payments, at which it is possible to be gotten to give a maximum equivalent to him of 50% of the value of appraisal of his house and if its ratio of indebtedness is also of 50% of its wage. That client will have to do against an interest of 12% the first year, and soon annual revisions of the Euribor more 4.75 points. In its annual memory corresponding to exercise 2006, Santander explains that this he is one of the new businesses developed in that exercise in Spain, and adds very that “its impulse has contributed to elevate the growth of the new production of the direct credit until a 36%, over registered 20% in average in the area”. Which demonstrates that a business with risk, if well it is also managed is a good business.
Celeris Financial Services is participated by 20 savings banks of all Spain, and besides realising personal loans, one of its businesses is to regroup the debt of clients of these boxes that have had some type of dilatoriness incidence.
To regroup the loans
To these clients it is commited to them to cancel all loans and to regroup them in which it can at the most reach 70% of the value of appraisal of his house with two or three pending quotas or delays and following the ratio of indebtedness with respect to the wage. When the client or is immersed in a judicial process the maximum that grants to him is a mortgage of the 50 or of 55% of the value of appraisal of its house and with an interest of the Euribor the more 6 points. Also, several small farm loan banks are in process to group themselves to remove their own mark for this type from businesses.
Caixa Galicia has its own mark to refinance debt: CXG Familiar Credit. Under this company/signature, besides granting all type of loans it realises debt regrouping, that if she is clean, that is to say, without no type of dilatoriness, can reach to 80% of the value of appraisal of the house of the client. When some type of incidence is observed that appraisal remains in 65% of the value of the house and the interest that is received is the Euribor more 2.5 points; if there is some judicial process by means stoops to 50%, and the type of interest rises to the Euribor more 3.5 points, whereas if there is executive procedure the applied type is Euribor more 4.5 points.
The German bank Deutsche Bank, that has recognized to be affected by the hypothecating crisis of the United States and whose result has descended a in the last quarterly 19%, also has mortgages of high risk in Spain through company/signature DB Credit. Its more significant product is a mortgage whose volume reaches the 120% of the value of appraisal of the house, but the quota cannot exceed 40% of the income of the client asks for who it. Also it admits refinancing of debt clean, equivalent to the 100% of the value of the house, when the majority of the organizations does not grant more of a 80%. The ratio of indebtedness can arrive until 65% of the pay of the client when this one has not had any type of incidences of weak type and has an indefinite contract.
Clients in file of weak people
General Electric is also classic in our country with respect to refinancing or regrouping of debts. Its more common mortgage is the one of until a 80% of the value of the house with a rate of indebtedness of 35% with respect to the wage.
The peculiar thing, is that it admits clients who are registered in the file of weak people of the National Association of Financial Organizations (Asnef) with a number of up to 10,000 Euros, although the amount most common in the clients with whom it works oscillates between the 3,000 and 4,000 Euros. Any other organization does not work with these clients.
In order to reunify debt of clients under judicial procedures, the maximum credit that grants is of 65% of the value of the house and with a ratio of indebtedness of 50%, and the interest arrives until the Euribor more 8.35 points.
In spite of everything, Spain continues being a paradise for the banks and boxes as far as dilatoriness, because they are in historical minimum rates and because the average degree of cover of the bank is of 250% with respect to the credits of doubtful collection.
However, the volume of doubtful credit rose in August to 13,826 million, which supposes an increase of 34.5% on equal month of 2006. The rate of dudosidad has that happened 0.741% that was a year ago to 0.826% of now, informs Servimedia.