Home loans and mortgages | how is the market


The number one reason why Italians are asking for loans has to do with the renovation of the house. This is what the latest edition of the Observatory shows that at the end of May 2016 explains how in the first 4 months of the year the loans disbursed to put back their homes are equal to 34% of the requests while those to change the ‘furnishings are 16%. Adding the two percentages leads to 50% of the total disbursements requested. Immediately after the house the Italians ask for a loan for the purchase of a used car, in this case the percentage is equal to 21.8%. More generally, 19.6% of loans were granted for a period of 60 months and 15.3% for a period of 36 months.

Average amount of loans and age range

The average amount of loans disbursed amounted to 11,746 euros, down compared to the first six months of 2015 (12,003 euros). 30.4% of loans disbursed amount between 5,000 and 10,000 euros. If we look at the different geographical areas, the loans are stable compared to the previous surveys of the aforementioned Observatory: in the North, the percentage is 39.2%, in the Center around 22.1%, in the South and in the Islands 38.7%. For the age group, the most disbursed loans are those relating to the 36-45 age group (38.2%); in second place loans in the 46-55 age group with 26.5% of the requests.

Home loans

As regards mortgages for the purchase of housing, the average loan granted in the last six months amounted to approximately 118,000 euros (-3.8% compared to the survey of six months ago) on the levels recorded at the end of 2015. According to the survey of the Observatory which reports a slight fall in both the amounts disbursed and the loan to value, compared to what is in any case a general growth in disbursements and a tightness of the entire market for home finance.

The average loan to value, ie the percentage paid in relation to the value of the property to be purchased, fell in the six months to 53.5%, still well above the psychological threshold of 50%. The gap between the amount requested and the amount granted rose to 4.6%, that is, to the levels of a year ago, while in the six months before the gap it had practically zeroed. The average age of the borrower remains stable at 40 years as well as the duration of the loan granted, equal to 21 years.

Italians confirm that they prefer fixed-rate mortgages, equal to 64.5% of the total loan applications. The variable rate instead “catches” about 28% of all financing applications. Regarding the purpose of granting the loan requested, up to six months ago the subrogations accounted for 59% of the total, a percentage dropped to 50% in the last six months. Mortgages for the purchase of the first house are increasing, the purpose of which concerns 39% of the disbursements.