The number one reason why Italians ask for loans has to do with home renovation.
This is what is revealed by the latest edition which at the end of May 2016, explains how in the first 4 months of the year the loans disbursed to replace your home amount to 34% of the requests while those to change furnishings are 16%. Adding the two percentages you get 50% of the total disbursements required. Immediately after the house the Italians ask for a loan for the purchase of a used car, in this case the percentage is 21.8%. More generally, 19.6% of loans were disbursed for a period of 60 months while 15.3% were for 36 months.
Average loan amount and age range
The average amount of loans disbursed is € 11,746, down compared to the first six months of 2015 (€ 12,003). 30.4% of the disbursed loans have an amount between 5,000 and 10,000 euros. If we then look at the different geographical areas, the granting of loans is stable, compared to the previous observations of the aforementioned Observatory: in the North the percentage is equal to 39.2%, in the Center around 22.1%, in the South and in the Islands to 38.7%. For the age bracket, the most disbursed loans are those relating to the 36-45 age group (38.2%); in second place loans in the 46-55 age range with 26.5% of requests.
With regard to mortgages for home purchase, the average loan granted in the last half year is approximately € 118,000 (-3.8% compared to the survey of six months ago) on the levels recorded at the end of 2015. Thus according to the survey which reports a slight decline both in the amounts disbursed and in the loan to value, compared to what is in any case a general growth of the disbursements and a resilience of the entire market for home financing.
The average loan to value, or the percentage disbursed in relation to the value of the property to be purchased, is down in the half year spent at 53.5%, however always well above the psychological threshold of 50%. The gap between the amount requested and the amount granted increased to 4.6%, that is to say, to the levels of a year ago, while in the six months preceding the gap 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.
The Italians confirm that they prefer fixed-rate loans, equal to 64.5% of the total loan applications. The variable rate, on the other hand, “catches” around 28% of all loan applications. With regard to the purpose of disbursement of the loan requested, up to six months ago the subrogations represented 59% of the total, a percentage that has fallen to 50% in the last six months. Mortgages for the purchase of the first home are on the rise, the purpose of which is 39% of the loans.