Requesting a mortgage and having the bank grant it to us is not easy at present. Financial institutions require important requirements to offer a mortgage without endorsement to consumers. Fulfilling all of them we can get a mortgage without a guarantor.
Requirements to sign a mortgage without endorsement
If we need a guarantee to get a mortgage, it is because the bank needs a greater guarantee to finance us since we would not be fulfilling some of the requirements necessary to sign a mortgage:
High savings. They are necessary to meet the costs of formalizing the mortgage, which approximately amount to 15% of the value of the home. And also to contribute 20% of the value of the house that the bank does not lend us, since it only finances 80%. In total it is necessary to have approximately 35% of the value of the home, or what is the same 35,000 euros of each 100,000 euros.
Stable and high income. What implies the need to have a fixed job and with seniority. It must be borne in mind that banks do not grant mortgages whose shares exceed 35% of the holders’ income. According to this premise, the salary must be high. Normally banks request payrolls of 2,000 euros among all holders.
Do not have debts. Appearing in a file of debtors such as ASNEF or RAI means saying goodbye to the possibility that a bank will finance the purchase of a home.
If we meet all these requirements or even have a profile still more solvent than the minimum required by the bank, we will not have problems finding financing. However, if we fail in any of these requirements, the bank may refuse to grant us the mortgage loan or may request the guarantee of a mortgage guarantee.
Alternatives if we can not get a mortgage without endorsement
If the bank does not grant us financing to buy a house and in exchange requires us an endorsement, it means that we do not have high guarantees to repay the debt without problems. In this scenario we have two possibilities:
Rent a house. Continue living on rent and wait until our financial level is adequate to obtain a mortgage with the lowest possible risk.
Subscribe a payment insurance. It is a product that significantly increases the mortgage, so if we already had a profile limit to access credit, this option can leave our personal finances even more against the ropes.
Is it advisable to sign a mortgage with a guarantee?
Hiring a mortgage without a guarantee is the most advisable option because nobody will have to support our credit and assume all the risk involved. You have to know that a guarantor does not get any advantage (except to help us get financing), but assumes the inconvenience of having to respond to our defaults with all their present and future assets, which could be seized if we do not pay the fees of the mortgage on time.
Consequently, it is always better to sign a mortgage without a guarantee because, in addition to being less risky, it implies that we have a solvent profile and are more likely to be able to repay the debt without problems. However, there are times when the endorsement can be a good option.
For example, if we have found a home that has very good characteristics, with a price well below the market, a good location, etc. But we do not have enough savings, this time that we endorse is a good option since we have income and it is a very good buying opportunity.
Can you get a 100 mortgage without a guarantee?
Currently, banks grant financing of up to 80% of the purchase price. However, there are three alternatives to obtain 100% financing:
Acquire a bank floor: banks usually grant 100% financing when buying a bank flat. Actually, these properties are not cheaper, but because the vast majority of banks cover the bank, by proceeding from foreclosures, the entities offer facilities to give them exit.
Achieve an appraisal higher than the value of the sale: little by little the banks are making the established requirements more flexible when granting financing. Until a few years ago, the usual thing was for entities to offer 80% of the lowest value between mortgage appraisal and purchase and sale. However, in 2016, some entities grant 80% of the appraisal value, and if this is higher than the purchase price, it is, therefore, a way to give a 100% financing.
High level of solvency: to get a mortgage without collateral it is necessary to be solvent, but if we also want a 100% financing, the bank will demand an even higher solvency. For example, income above the average, high level of savings, being an official or having a job with a lot of seniorities and in a future sector, among other requirements.
Compare several mortgages before signing
Before joining a loan, it is best to compare the different options presented by the current market- check it out.
The financial comparator HelpMyCash.com advises comparing at least three mortgages at the same time, asking for detailed information on each of them so that we can compare each of its characteristics and choose the product that best suits our needs and our personal situation.