Three months, over 1,000 scriptures

We entered 2023 with the awareness that this is a challenging year. The cost of living has risen significantly, home loan installments have skyrocketed. A context that highlights the importance of the role of the Doctor of Finance in Portuguese society. With a well-defined mission – to help people make better financial decisions – we face 2023 with redoubled energy. And the results are in sight.

More than 1,000 deeds in one quarter

Specialists in personal finance, the doctors rolled up their sleeves and did their best to find the best financial solutions for our clients. During the first quarter of the year, we did 1,120 scriptures. A milestone never reached before. In these first months of the year, we were able to observe a significant growth in transfer processes of credit, which is explained by the increase in the Euribor rate and the facilitation of this process, with the end of the requirement to pay the early amortization commission in contracts with a variable rate until the end of the year. us to help them buy a house, this year, most of our customers are looking for us to improve their financing conditions. Like this, 66% of the deeds carried out were related to transfers of Mortgage Credit. It is, after all, a positive sign, that the people are getting more advantageous conditions for their loans and, with that, ease the family budget. This has been our role: to help them find the best deals on the market, streamline the entire process, and contribute to savings that are, in many cases, hundreds of euros per month.Read more: The Customer Experience

LTV below 80%

At the same time, it should be noted that the overwhelming majority (82%) of the processes we have at hand have a LTV (Loan-to-value) less than 80%, a very relevant data. This indicator means that people are requesting financing corresponding to less than 80% of the value of their properties. This number is very relevant both for people and for banks. The risk associated with an operation with a lower LTV is further reduced, which allows customers to have access to more advantageous financing conditions. I remind you that banks can lend up to 90% of the value of real estate. Also read: Banks lower spread of housing credit. There are already offers of 0.75%

Effort rates below 35%

Another piece of data worth mentioning, which assumes more relevant contours due to the current situation, is the effort rate of our customers. In recent months, much has been said about the difficulties faced by families in facing this period of rising interest rates. The reality with which we have been confronted gives us some encouragement. Despite the recent rise in interest rates, the vast majority (80%) of Doutor Financeira clients have an effort rate of less than 35%, a level that implies a low risk of non-compliance. Of course, we know that there are more complicated cases, that there are families that face greater difficulties. But the data that we were able to gather, taking into account the universe of customers, corroborate the data from Banco de Portugal on the default, which is at an all-time low.The latest data from the Bank of Portugal reveal that only 0.3% of total mortgage loans granted are classified as in default. In terms of volume, we are talking about 295.8 million euros, the lowest amount since there was data.This is a very important indicator, which brings us some peace of mind and suggests that the specter of default on mortgage loans is far away. Even so, we must remain alert and anticipate scenarios, in order to avoid financial problems. The first months of the year were challenging. At Doutor Finance, each specialist put on his or her own coat to help provide greater financial well-being to our clients. The coming months are likely to be equally challenging. Being sure that we will be here to help all those who look for us. Cláudio Santos began his career in the banking sector in 1992 at Loyds Bank, ending in 2012 at Deutsche Bank after passing through Banco Fomento Exterior and Banco BPI. After an international experience of 3 years as Commercial Director, he joined in 2016 at Doutor Financeira. He is currently a Partner, Board member and Chief Commercial Officer (CCO). The information contained in the article is not binding and does not invalidate the full reading of documents that support the matter in question.