How to get a mortgage 100% financing?

How to get a mortgage 100% financing?
A bank that finances up to 100% of the value of a property is not easy, since it is an operation that, due to its characteristics, has a higher default risk. That is why the maximum that the entities usually provide is up to 80% of the valuation or purchase value (the lowest of the two) when a first home is acquired or up to 70% when the loan is requested to buy a second residence. However, there are still several banks that have 100 mortgages in their product portfolio, so if we know where and how to look for them, we can come up with one. Let's look at what ways we can do with a 100 mortgage today:

Have an excellent financial profile: if our monthly income is stable and very high, our chances of getting a mortgage loan of these characteristics will be higher. In that sense, if we want to be granted a mortgage 100% financing to acquire a home that does not belong to a bank, we must have a salary of more than 2,500 euros per month, have a fixed job, have a certain work seniority, not having just outstanding debts for other credits and not appearing in delinquency files like ASNEF.
Request a mortgage for one of the floors of banks: the entities want to get rid of this type of assets, so if we choose to buy flats from banks, in many cases we can get more funding until reaching the total value of the living place. However, we must keep in mind that not all mortgages for bank floors are 100% mortgages, so the financing they offer may be less.
In addition, we have another way to get 100% financing mortgages, although in this case we would have to pay an additional surcharge: we mean to hire the services of a financial intermediary. These professionals, also known as brokers, have a very close commercial relationship with the banks, so they can negotiate for us the granting of more than 80% of the value of a home. In return, we will have to pay a commission of intermediation of between 1% and 5% of the principal of the mortgage obtained.

Whether you are asking for a full mortgage loan or for the usual 80%, if you have never asked for a mortgage we recommend you take a look at the following free guide.



Why is not it so easy to get a 100 mortgage?
Before the global economic crisis erupted, banks granted 100% mortgages or full financing of the value of the sale very frequently; in fact, many of them even gave more than 100% so that their clients could also pay the constitution expenses and other costs, such as a reform. This practice was very common in many countries, taking place, for example, during the Spanish real estate and financial bubble or before the subprime mortgage crisis in the United States. However, the situation has changed a lot since then: most banks now finance up to 80% of the lowest value between home purchase and sale, for variable mortgages as well as for mortgages. mixed and fixed.

Another reason why it is more difficult to obtain one of these loans is that Article 3 of Royal Decree 716/2009, which develops various aspects of Law 2/1981, of March 25, regulating the market mortgage loan and other mortgage and financial system rules expressly prohibits the securitization of mortgages that grant more than 80% of the financing, so that the entities can not sell them as assets to third parties (such as mutual funds, example). In practice, this means that banks can not monetize that debt, which forces them to assume all risk of default.

Find the best deals for banks floors
As we have pointed out in the first few paragraphs, one of the ways that now exist to obtain a 100% mortgage loan is to acquire one of the floors of the banks. These properties, which belong to banks, have several advantages, such as can be purchased with full financing mortgages, but also have several drawbacks, such as that usually come from foreclosures that ended the eviction of previous owners. If we want to acquire one of these houses, we can find them in the following ways:

Through the web portals of the entities or going to an office directly to ask for their offer of flats of banks. Many entities have created

Characteristics of 100 mortgages for bank floors
As the name implies, the main difference between these products and the rest is precisely the percentage of funding provided by the bank, although in other respects, mortgages 100 essentially have the same characteristics as mortgages which finance less than 100% of the cost of housing to be acquired. However, because of the high funding they allow us to get and to which they are normally granted to buy flats from banks, the conditions of these products can be something particular:

As the amount financed is higher, 100 mortgages can have longer mortgage repayment terms, usually up to 30 years or, in some cases, up to 40 years. Of course, we must count on stretch the mortgage 100 so that the monthly installments are reduced, the interest generated increase, so that the mortgage loan is made more expensive.
The mortgage appraisal is usually paid. Banks usually have all their property appraised, so we will not have to pay that expense. This translates into savings of between 200 and 400 euros.
Despite the above advantages, 100% mortgages are not cheaper than the rest. Banks often offer the same conditions in terms of linked products and commissions, the only difference in this regard is the higher percentage of financing, which as we have explained before could reach 100%.
And for a mortgage 100% financing, what requirements will I require?
If we have decided to buy a house and we have opted to acquire the floor of a bank (practically the only housing that can be financed with 100 mortgages), it is indispensable that we previously know what requirements must be met to access this kind of credits. Usually, the conditions that have to be met in these cases are very similar to those that would require us if we wanted to contract a traditional mortgage, although with some nuances:

Employment stability. One of the fundamental requirements of any loan. If we have seniority in our work, in a stable sector and with a certain position, our access to the 100 mortgage will be much more likely. This is coupled with the fact that (among all holders) they have a minimum income of 2,000 euros per month.
Highly qualified guards. Having a guarantor and having at least our own financial profile will always be a factor that the bank will take into consideration. However, it must be clear that this does not bring any benefit to the person who guarantees and yes many risks, as this is exposed to lose their present and future assets in case of default of the mortgage.
Double guarantee. A second home, other properties or even the guarantor's own assets can serve as double guarantees, in addition to the house we want to buy.
Savings to meet management expenses. Although mortgages 100 will finance the entire housing, we will still need money to cover housing purchase costs, typically ranging from 10% to 15% of the value of the property.
Do not appear in any record of delinquents. If we find ourselves ready like those of ASNEF or RAI, no bank will grant us a mortgage with 100% financing.
Make sure you can pay the mortgage 100%
Although 100% financing mortgages allow the purchase of a home without the 20% savings required by the bank, we must have approximately 15% of the purchase value to pay the mortgage expenses (except if the product they grant us) is a mortgage 100 plus expenses, something that is very complicated). In addition, as the total capital to be reimbursed will be higher, we must also keep in mind that the fees will probably be higher. Some banks will allow us to extend the time limit so that the cost of the monthly payments is more affordable, but since the maximum age when the contract expires can not exceed 75 years, we will not be able to stretch the mortgage to infinity.

At the time of making us with our 100% mortgage we will have to consider the following points:

Do not allocate more than 35% of the monthly income to the payment of the mortgage. According to the recommendation of the Bank of Spain, if we exceed this quota threshold, we will expose ourselves to default, since the economic pressure that would represent the monthly mortgage could prevent us from making the payment. In addition, if the mortgage were variable rate, a rise in the euríbor could put in check to our personal finances. So, to give us an idea, if we charge a monthly income of 2,000 euros, it is advisable that the fees do not exceed 700 euros.

Do not get into debt above the possibilities of each one, since we would run the risk of losing our home. Furthermore, since n