Non-banking mortgages are coming

Part of the housing credit financing deficit, estimated at 6 billion euros per year, is to be claimed by mortgage credit companies, whose are now being licensed at the initiative of the Ministry of National Economy and Finance.

These are companies financed mainly by funds, but also by other entities, such as insurance companies, with the aim of lending to individuals for consumer and housing loans, but also to businesses – whether it is refinancing or new lending.

The key feature of credit companies is that since they do not rely on customer deposits, they have more flexibility in granting criteria and pricing capabilities depending on the customer’s risk.

That flexibility does not necessarily imply lower interest rates. This depends on the category in which a credit company operates and specializes, and, of course, on the customer’s profile and the credit risk involved lending them money. Borrowers who were burdened in the past or are still burdened with bad loans or who are considered high risk may be financed with a higher interest rate than the average lending rate of a bank, while other categories may pay the same or even a lower rate.