Normally the acquisition of a garage, is performed simultaneously with the purchase of the flat or house, however, there are several reasons why this operation is not carried out jointly, whether the extra space is bought by spending to have a second car, or because the building where it was purchased does not have places to park the car or as an investment.
In this post we talk about the alternatives to the mortgage in the purchase of housing
That is why, in these cases, many Spaniards consider the need to access a funding proposal that best suits the case, and this is exactly what we will discuss next.
Until recently, the market did not offer a specific product that provides the financing necessary to acquire a parking space, therefore, there was no other option than requesting a personal loan for financing.
If you are considering a mortgage application, in this article we compare the online mortgage with the conventional mortgage.
The sunset of the parking mortgages
They were a product not very commercialized nor well known, of which, to date, there is no trace (or not advertised) in the market.
First, parking mortgages granted capital of up to 70% of the appraised value of the garage, a situation that is a comparative advantage over personal loans, which in general terms are more limited in the aspect of capital.
Normally and by the modality of mortgages, the requirements to access this type of loans were lower than in the case of personal loans, since it is enough to own a property for the loan to be granted.
In this other article we show you how many years it is better to buy or rent
Also, one of the main advantages of mortgages against loans is the repayment term. Normally these mortgages were granted with terms of up to 15 years for their return and therefore maintain a much lower rate than a personal loan.
However, not all are advantages when we talk about these mortgages. In general terms, the formalization expenses were very high, since a multiplicity of commissions were applied, such as opening, early cancellation, partial amortization and study, etc. The effect of these commissions can increase the final product by up to 5 %.
The second difficulty when trying to access this type of credits, is that they were not very popular. There are few banks and boxes that have created this specific product. As an example we can mention the Parking Mortgage that at the time it was selling Unnim, although it was not a product that was lavished before and that, of course, is still not very abundant (not to say it is non-existent)
The best thing in these cases is to find out in your bank or cashier the type of financing offered, however, personal loans are usually between 8% and 10% per annum and all options should be analyzed.
In any case, and apart from these specific operations to which we referred, mortgages nowadays begin to be truly affordable in relation to what they supposed to be only a year ago. Let’s not forget that after the rupture that supposed to transfer the psychological barrier of the spreads to 2%, we have witnessed a scenario in which these differentials have gradually been decreasing, until finding today an offer in which we can find differentials to 1% (although it is true they are not the most frequent)
In other words, mortgages are becoming cheaper each time, although, it is true, this drop in spreads has to do with a time when interest rates and the price of money have fallen dramatically, and in the fact that even the effects of disinflation are felt. It is also notorious, and so we must pick it up, the fact of the decrease in the levels of demand, for example, by reducing the requirement of minimum income to access the best conditions of mortgages although, yes, we must take into account that the levels of bonding are increasingly higher.