2024-10-07 16:09:58
60% of Spaniards perceive the process of taking out a mortgage as difficult or very difficult, according to a survey carried out by the Real Estate Credit Union (UCI), an alliance between Banco Santander and BNP Paribas. This information emerged in the context of Financial Education Day and reflects a complex situation in the Spanish real estate market, where buyers are faced with a mix of procedures, technical language and large-scale decisions that can discourage many.
The study reveals notable regional differences: while in Navarra, Murcia and Madrid, between 70% and 75% of those interviewed said they had difficulty taking out a mortgage, in La Rioja, 100% of those interviewed said that the process is simple. These disparities may be due to factors such as variation in access to financial advice, house prices and the level of financial education of the population in each autonomous community.
UCI commercial director Lorena Zenklussen highlighted the importance of having an experienced advisor to guide the mortgage process. According to Zenklussen, the Law regulating real estate credit contracts, in force since 2019, has strengthened transparency in the contraction of mortgages and attributes an important role to notaries, who verify that the applicant understands the terms of the contract. However, the complexity of the process, combined with the significance of the decision – which impacts family finances for an average of 20 years – means that many buyers feel the need for professional support to understand the financial and legal terms involved.
Furthermore, the study shows that almost a third of those interviewed (25.3%) do not know the requirements for applying for a mortgage. The highest levels of ignorance are found in Navarra, the Basque Country and Galicia, with rates of up to 50% in Navarra. This information gap presents a problem for those looking to purchase a home, as a lack of knowledge of the requirements can discourage many from starting the mortgage process or making costly mistakes.
UCI Sustainability Director Càtia Alves also warned about the low level of financial education in Spain, an aspect that goes beyond the real estate market and influences everyday decisions. In fact, the PISA report, which evaluates the financial knowledge of high school students, highlighted a decline in the level of young Spanish people. Alves argues that promoting financial education from an early age is fundamental, as it allows citizens to make safer decisions in decisive aspects such as purchasing a house, where a long-term mortgage is usually taken out which has a profound impact on economic stability of the house.
Given this scenario, some experts propose that financial education should be more integrated into school curricula and not limited to basic concepts, but should be extended to topics such as mortgages, interest rates and debt management. In an environment of rising interest rates, like the current one, knowing how these mechanisms work could make a big difference for future generations of buyers.
Banks and credit institutions also play a role in facilitating access to information, offering their customers mortgage simulators on their sites and personalized consultations in their offices. However, the disparity in access to these services and the complexity of many financial terms mean the process is still intimidating for many buyers.
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