Mortgage, 15 billion in unpaid installments by Italian families

Fabi’s analysis: Lombardy and Lazio are at the top of the rankings, followed by Campania, Puglia and Basilicata

Tap i 15 billion euros for the total unpaid installments of almost one million Italian families: the increase in the cost of money, the increase in interest rates and the race for inflation reduce disposable income and make it difficult for bank customers to meet loan deadlines. Overall, household non-performing loans reached 14.9 billion last March: in detail, these are 6.8 billion in unpaid mortgages, 3.7 billion in unpaid consumer credit and 4.3 billion in arrears of other personal loans. This is the picture that emerges from an analysis by Fabi, the result of elaborations on statistics from the Bank of Italy.

Of the total of 14.9 billion, 5.7 are non-performing loans, i.e. loans that customers will no longer repay, another 7.1 billion are probable defaults, i.e. money that banks realistically will not recover, while around 2 billion are overdue installments , therefore less risky debt positions. The difficulties of households mainly concern variable rate mortgages, particularly affected by the increase in the cost of money brought from 0 to 4% in 11 months: this category of real estate loans is worth a total of around 140 billion and represents a third of the total of 425 billion disbursed.

Territorially, at the top of this particular ranking, there are Lombardy and Lazio with an amount of unpaid installments over 2 billion. Campania, Puglia and Basilicata, Sicily and Veneto exceed one billion. Emilia Romagna, Piedmont and Valle D’Aosta, and Tuscany remain just under one billion. The value of the unpaid sums is more contained in the smaller regions such as Umbria where the unpaid installments amount to 226 million, Liguria (361 million) and Calabria (418 million).

On a territorial level, the data on non-performing credit divided by region are substantially superimposable on the demographic picture of the country, notes Fabi who photographs the map of the Italian regions.

Lombardy, with 2.6 billion euros, is the region in which the highest amount of deteriorated loans is concentrated, followed by: Lazio 2 billion, Campania 1.4 billion, Sicily 1.2 billion, Puglia and Basilicata 1 billion and 65 million combined, Veneto 1 billion and 27 million, Piedmont and Valle d’Aosta 984 million together, Emilia Romagna 983 million, Tuscany 973 million, Calabria 418 million, Marche 390 million, Abruzzo and Molise 372 million together, Liguria 361 million, Sardinia 318 million, Trentino Alto Adige 239 million, Umbria 226 million, Friuli Venezia Giulia 222 million. As regards mortgages in particular, in Lombardy arrears are worth 1.4 billion (618 million bad loans, 707 million unlikely to pay and 124 million overdue installments); in Lazio the phenomenon is worth 934 million (327 million bad loans, 503 million unlikely to pay and 104 million in overdue installments); in Campania the amount is equal to 614 million (279 million bad loans, 275 million unlikely to pay and 60 million installments due); the figure attributable to Sicily is equal to 549 million (205 million non-performing loans, 282 million probable defaults and 62 million in overdue installments).

This is the detailed map:

LOMBARDY. The total of unpaid installments by families in Lombardy amounts to 2 billion and 654 million. Of these, 1 billion and 52 million have already become non-performing loans (618 million from mortgages and 277 million from other loans). The improbable defaults are 1 billion and 282 million deriving, for more than half (707 million) from mortgages. Overdue installments amount to 320 million: 150 million in consumer credit, 124 million in mortgages and 46 million in other loans.

LAZIO. Total unpaid installments in Lazio amounted to 2 billion. Households encounter greater difficulties especially in repaying mortgages: missed payments amount to around 934 million. Of these, 327 million are already non-performing, 503 million are probable defaults and 104 million are overdue installments.

CAMPANIA. In Campania, the total unpaid installments amount to 1 billion and 434 million. Also in this case the greatest difficulties are found in mortgages (614 million), but the weight of consumer credit is also significant (502 million). As regards mortgages, 279 million are already non-performing loans, 275 million are unlikely to pay and 60 million are overdue installments.

SICILY. The total of unpaid installments in Sicily has reached 1 billion and 286 million. Households encounter difficulties in supporting mortgages (549 million unpaid installments), but also consumer loans (443 million). For the other loans, installments of 294 million have not been paid.

APULIA AND BASILICATA. In Puglia and Basilicata the unpaid installments amount to 1 billion and 65 million. About half – 461 million – due to the difficulties of households on mortgages, while there are 322 million unpaid installments on consumer credit and 282 million those for other loans.

VENETO. The total of unpaid installments in Veneto is equal to 1 billion and 27 million. Just under half, 478 million, concerns mortgages which already include 183 million bad debts, 259 million unlikely to pay loans and 36 million in overdue installments.

PIEDMONT, EMILIA ROMAGNA AND TUSCANY BELOW BILLION. In Piedmont, Emilia Romagna and Tuscany the installments not paid by families are placed below one billion. Mortgages account for about half in Piedmont and Emilia Romagna: respectively 478 million and 431 million in unpaid installments. In Tuscany, non-payment of mortgage installments weighs less than a third (382 million), pressed by unpaid installments for other loans (369 million) and consumer credit (207 million).