In Spain, the dream of owning a home continues to be an elusive goal for many young people. To a large extent, due to the labor and economic instability that affects a large part of this group; something that often prevents people from having sufficient solvency to access a mortgage to finance the purchase of a house or apartment.
But what about those who do enjoy a good job? According to the financial comparator HelpMyCash.com, young people who have job stability and earn a good salary do have the option of getting a mortgage. In fact, they have several ways to obtain the necessary financing to buy a home; some of them restricted only to their group.
The first option is to request mortgages aimed at the general public, that is, they are not exclusive to young people. In general, conventional mortgage loans allow you to finance up to 80% of the home purchase, so it is necessary to have saved the remaining 20% plus an additional 10% to pay the expenses associated with the sale: taxes, notary, registration...
The price of the mortgage will depend on the internal policy of each entity. For this reason, HelpMyCash advises going to as many banks as possible to compare their proposals and negotiate better conditions. This task can also be delegated to a mortgage broker, who will be in charge of haggling until you get the most attractive offer.
Another option is to go to banks that offer exclusive mortgages for young people, usually aimed at those under 35 or 36 years old. Their conditions are usually more favorable than those of conventional mortgage loans: many of them allow you to finance more than 80% of the home purchase and some have a lower interest rate than that offered to older clients.
Among the entities that market this type of mortgages are Kutxabank, Bankinter or Banco Santander, among others. According to HelpMyCash analysts, with this strategy they aim to attract young clientele with a good purchasing power, who will potentially take out other banking products (accounts, loans, cards, investment funds...) during the repayment period of the mortgage loan.
The Kutxabank Young Mortgage is one of the most representative cases. It allows you to finance up to 95% of the purchase of a primary home, so you only need to have savings to pay the remaining 5% plus purchase and sale expenses.
And its interest is from Euribor plus 0.39% (2.50% fixed the first year) until one of the owners turns 35 and from Euribor plus 0.49% thereafter, in exchange for direct debiting the payroll, taking out the insurance of the bank's home and invest in one of its pension plans.
Finally, it is important to note that various autonomous communities offer public guarantees so that young people can obtain mortgages that finance between 90% and 100% of the purchase of a home: the Community of Madrid, the Balearic Islands, Andalusia, the Region of Murcia …Of course, you have to meet certain requirements and go to the entities that have signed agreements with the corresponding administration.
Likewise, soon you will be able to access a public guarantee managed by the Official Credit Institute, which will also allow you to obtain a mortgage of up to 100%. The beneficiaries of this measure will be young people under 35 years of age and families with dependent children who meet the access conditions established by the Government of Spain.
