Does the name CIRBE ring a bell? Most likely not, and if it does, it's probably due to issues related to the company. The truth is that it's a term you should know if you have or are going to apply for a mortgage. Now you'll see why.
What is CIRBE?
CIRBE is the acronym for the Central Risk Information Centre of the Bank of Spain. A much easier and shorter way of referring to this organisation.
And what exactly does CIRBE do? It is a database with information on loans, credits , guarantees and collaterals of banks and financial institutions with their clients. In other words, a gigantic register with the direct and indirect debt of all bank clients.
Is it the same as a bad debt register?
Perhaps the definition of CIRBE sounds like a register of defaulters to you. Nothing could be further from the truth. CIRBE is not a list of defaulters.
Unlike lists of non-payments of individuals and legal entities, such as ASNEF, RAI or CCI, CIRBE gathers information on both those who are up to date with their payments and those who are not. Thanks to its information, it is possible to find out a person's debts and their commitments as a guarantor, but not whether that person is up to date with their payments.
What debts does CIRBE record?
The Central Risk Office of the Bank of Spain (BdE) is very useful, but it has its limits . The information it records is not universal.
On the one hand, CIRBE only offers aggregated global information. What does this mean? It does not publicly break down all debts one by one.
On the other hand, the general report does not include transactions with an aggregate risk of less than 1,000 euros with an entity. To help you understand better, if you have a loan for less than that amount, it will not be added to the publicly accessible CIRBE report. Only you, as the debt holder, can access the information on those loans.
How CIRBE affects you when applying for a mortgage
By now you may have a rough idea of how CIRBE data influences your application for a mortgage and, above all, your chances of being granted one.
Just in case and to clear up any doubts, when you apply for a mortgage, all financial institutions will consult the CIRBE to analyse the risk they run if they grant it to you.
In addition, other requirements for applying for a mortgage will also be analyzed , such as your income, job stability, the savings you contribute or the type of home you want to buy.
The CIRBE data will serve to confirm your general level of indebtedness . It is rare to find people with large amounts of debt in microcredits and quick mortgage loans, none of which exceeds 1,000 euros.
In addition, the entity will also study the CIRBE report of the guarantors you present , to find out if you have other debts and if they are a guarantor of guarantee. If you are thinking of asking for a mortgage without guarantors, this should not worry you.
Can I get ahead and see my CIRBE risk report?
Of course! Your CIRBE information is public and you can always access your risk report .
To do so, you only need to access the “Risk report requests by holders” section within the Virtual Office of the Bank of Spain and complete the procedure online, in person with an appointment or by regular mail.
Who else can request a CIRBE report? CIRBE information is public to you, but private to the rest of the world.
In fact, financial institutions or real estate credit intermediaries will be able to access it when you apply for a mortgage, a loan or carry out any operation that requires a risk report. Until then, this information will be confidential.
Knowing your CIRBE data can help you become aware of your overall debt level and future borrowing capacity. As a general rule, most entities will check that your debt ratio does not exceed 30% or 35% of your income in order to grant you a mortgage.