The rise in the cost of money has generated for families with variable rate mortgages increase between 35% and 119% of the monthly payment, in less than two years. This has led to a contraction of up to 51% of their net residual disposable income, even below the subsistence minimum.
These are the data from the first 2024 edition of the SalvaLaTuaCasa Observatory created by Nomisma for the benefit company Save Your Home which proposes securitization with social value as a solution to the mortgage emergency.
The Observatory, presented to the Chamber, indicates how families who have to bear a high monthly repayment, exceeding 700 euros, between mortgages and consumer credit, have gone from 27% at the beginning of 2023 to 40% at the end of the same year.
An increase in auctions is expected
Nomisma also expects, in the coming months, a deterioration in credit quality and an increase in insolvencies, which will probably also be reflected in the auction market. According to forecasts, auctions in 2024 will be between 160 thousand and 180 thousand, an increase of 12% compared to 2023.
According to the study, the auction system presents macro-costs estimated overall at 9 billion euros for the public system, a cost per foreclosed family of 23,000 euros and negative effects for both banks and families starting from the auction prices which can halve the value of the property compared to market prices. “The SalvaLaTuaCasa Observatory highlights an increasingly critical situation for Italian families. For many families, in fact, a constitutional value is at stake: the right to housing”, underlines the CEO of Save Your Home, Gianfranco Dote. “To defend ourselves from this emergency – adds Dote – we want to invite politics and credit institutions to consider the social value securitization tool in credit management processes, which meets the needs of banks to dispose of impaired loans with that of investors who can finally opt for a transparent, ethical and high social impact operation”. Through this mechanism, he explains, “it is possible to transform a stranded debtor into a once again solvent consumer, without him losing his home at auction, with the guarantee that he will definitively pay off his mortgage and also granting the possibility of being financially re-included” .