Despite the increase in interest rates, which after the two increases made by the ECB makes bank loans more expensive, according to the latest analysis of Crif Barometer on Eurisc sources, applications for households in October are characterized by a growth of +10% compared to the corresponding period in 2021. This positive trend also affected the average amount requested, which after nine consecutive months of negative variations increased by +1.6% to €8,127. In detail, personal loans increased by +19.5%, while the average amount amounted to €12,041 (-5.8% compared to the same period in 2021). The trend is also positive for loans for special purposes, which increased by 5.4% and brought the average amount to €5,950 (+5.3% compared to October 2021).

Pledge on the brakes

On the other hand, applications for mortgage loans and subrogation overall decreased by -24.5% compared to October 2021. However, it should be noted that this figure is affected by the decrease in subrogation, which decreased by -58.3% during the observation period. although it is gradually recovering from the recent rise in benchmark interest rates. For new disbursed mortgage loans, the decline was limited to a modest -1.5%. On the other hand, the average amount of mortgages applied for in October remained almost stable with a variation of +0.2% and a value of 142,660 euros. “It should be noted that the increase in the 3-month Euribor index, which rose from -0.50% on average in March 2022 to +1.3% on average in September 2022, led to a significant increase in the size of the annuity for variable-rate mortgages in the process of being repaid, pushing households towards fixed-rate or variable-rate fixed-rate contracts.Despite the situation of continued uncertainty, mortgage demand from young people remains strong, with more than 1/3 of the requests submitted by those under 35”, explains Simone Capecchi, CEO of Crif.

Focus on new credit

Crif also analyzed the profile of people who applied for a loan for the first time, “credit newcomers”, compared to those who already have a credit history, the “credit active”. Specifically, the analysis shows that new applicants have an average age of 32 (compared to 46 for active applicants), and that in 40.8% of cases they are under 25. In addition, the segment of new loans under the age of 25 increases by +7.6% compared to 2021, and almost every fourth request comes from citizens not born in Italy, with a growth of +14.5%. In terms of technical forms requested, one in two requests relate to a special purpose loan, while only 17% relate to personal loans. Finally, applications for cards (+25%) and mortgages (+3%) are increasing, while other forms of installment payment (such as leasing, hire purchase, transfer of a fifth of the salary or microcredit) have decreased by 1% compared to the previous period. “A significant contribution to the overall performance of the household credit sector comes from the growing weight of the segment of new credit players, mainly young people who enter the credit market and mainly ask for small amounts and short-term loans. In fact, more than 76% have an installment contract of less than five years and in 20.5% of cases for an amount of less than 1,000 euros”, concludes Mr. Capecchi. ()