Thursday, 23 May 2024
BusinessThe fragility of mortgages that cover more than 80% of the home:...

The fragility of mortgages that cover more than 80% of the home: their delinquency is eight times higher

15 days ago, the Government approved a guarantee plan for young people so that the mortgage exceeds 80% of the value of the property. Beyond the impact of this measure, which was criticized by the executive’s minority partner or by organizations in defense of the right to housing, it once again placed that mortgage bar on the political debate that marked many of the discussions after the financial crisis. The recent results of large banks show the fragility of loans when this limit is exceeded. Their defaults skyrocket.

Weeks after the banks presented their historic 2023 results, their annual reports have been published, detailing numerous aspects of the sector’s accounts. Among other things, the data on managed mortgages and the defaults they have recognized are exposed, depending on the percentage of the value of the home that the loan covers.

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