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The bursting of the housing bubble during the last crisis has transformed the real estate market in countries that suffered the heaviest price of housing. In the years prior to the Great Recession, there was a relaxation of the financial conditions that allowed young people with low wages to mortgage in the very long term with the risk that this entails. The bursting of the bubble has had serious economic consequences that have changed the behaviour of banks and families. Now, the composition of mortgaged homes has changed: the profile is a person over 40 years old and has a high level of income. This transformation of the mortgaged has also occurred in countries that did not suffer the bubble, but for different reasons.

...continue reading "Who is mortgaged today? The transformation of the real estate market"

Banks and financial intermediaries must provide customers who wish to take out a mortgage with pre-contractual information and standardized warnings.

...continue reading "Spanish banks should standardize notices on real estate loans"