The new year has begun a few days ago, and analysts are already wondering what we can expect from the world of mortgages in 2019. Is it worthwhile to contract a new mortgage this year? Will the conditions be favorable?
Will there be favorable conditions for subrogations?
For all those who have already contracted a variable rate mortgage, 2019 will not present any particular problems, also considering the injection of liquidity by the European Central Bank which will continue this year. The increases linked to the rise in the interest rate, on the other hand, appear to be destined to begin only in the second half of 2019 or even in the course of 2020. It is expected that the interbank rate will return to exceed zero in just two years, while it will remain to 1% only starting from 2023.
What kind of loan will be stipulated in 2019?
This will be the question that more than 250 thousand applicants will ask, together with those who will exploit the subrogation in search of better conditions for the mortgage loan already contracted. For new mortgages it is expected that the Euribor will maintain a negative value , while the Eurirs levels for fixed-rate mortgages could rise .
For the contractor, also in 2019 the parameters to be evaluated are always the same:
first of all it is necessary to compare the TAEG (annual percentage rate of charge) proposed by the various banking institutions, so as to address the lower one; subsequently it will be necessary to consider the so-called loan to value that represents, in percentage, the value of the mortgage with respect to that of the building.
Finally, the duration will be evaluated: the Eurirs is lower if the duration of the loan is lower, therefore it will be necessary to opt for a mortgage that lasts as little as possible, but with a “sustainable installment” based on one’s own economic condition.
Also for 2019, the main problems will be linked to the economic crisis and the trend in the family budget . One of the most truthful projections is probably that of the slowdown in subrogations , and the consequent decrease in disbursements.