At the moment the Covid-19 crisis has not changed the risk criteria. Banks have kept their eligibility criteria stable and the current situation has not had an impact on bids they had for their customers. Furthermore, new applications are being scrutinized perhaps a little more carefully, but without a radical change in their mortgage granting policy.
However, as in all sectors, they will be very attentive to how this situation of uncertainty is evolving, and their criteria may change overnight. Their main concern is the potential impact on the purchasing power of consumers, both from a reduction in their disposable income and from a possible loss of employment.
idealista / mortgages recalls that the main criterion that an entity will analyze to see if it grants us the loan is to see if we can pay them the loan installment every month. For this they will analyze:
Indebtedness: they will compute all of our declared income.
Other income, such as rentals, capital income, pensions, etc. As long as, as in the previous cases, they are declared and can be justified. To calculate the debt, the income of the family unit will be added and the loan fee cannot represent more than 35-40%
History of delinquency: They will request information from us in both Equifax and Experian to know our history of defaults. It is a file that contains information on the debtor’s unpaid credit operation and the historical evolution of the debt.
They will request our CIRBE at Bank of Spain. The Central Risk Information Center (CIR) of the Bank of Spain collects the credit history of natural and legal persons.
The risks declared by the entities are classified into two groups:
– Direct risks: are the loans, credits, bank guarantees, leasing, fixed income securities that the entity owns.
– Indirect risks: these are when you guarantee or guarantee other people who have granted loans or credits.
Percentage on appraisal. In mortgage loans for the purchase of a home, most entities will not exceed 80% of the appraised value.
Laboral life. The bank will take into account our employment history, seniority in the company, continued working life, periods of unemployment, employment sector, etc.
Type of contract. Permanent, temporary, civil servant, interim, autonomous, etc.
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