Spanish public administrations have made an effort in recent years to facilitate the purchase of housing for young people. Regions such as the Community of Madrid, the Balearic Islands and Castilla y León offer to guarantee part of the acquisition, while the Government, in collaboration with the Official Credit Institute, will soon launch a line of public guarantees for those under 35 years of age and families with dependent minors.
But public entities are not the only ones that want to provide facilities to this group. According to the financial comparator HelpMyCash.com, there are several banks that offer mortgages for young people with special conditions to achieve this objective: from financing higher than the usual 80% to a lower interest rate or a longer term so that the monthly payments are more affordable.
One of the obstacles that many young people face when considering buying a home is the lack of savings. As a general rule, mortgages granted by banks allow a maximum of 80% of the acquisition to be financed, so it is necessary to have enough money to pay the remaining 20% plus the purchase and sale expenses (an additional 10%); savings that many people aged 35 or younger have not yet been able to accumulate.
To overcome this obstacle, several banks offer to finance a higher percentage of the purchase when the mortgage applicant is a young person. For example, according to HelpMyCash, Kutxabank, Ibercaja or Banco Santander grant mortgages for young people that cover up to 95% of the value of the home, while Bankinter raises this maximum financing to 90%.
Likewise, there are entities that collaborate with regional governments to finance more than 80% of the purchase for young people who buy a home in those regions. This is the case, for example, of imagin (CaixaBank mobile banking), which offers mortgages of up to 90% in the Community of Madrid, the Balearic Islands, Andalusia and Castilla y León. In these situations, the autonomous community endorses the percentage that exceeds 80%.
Another advantage that some banks offer to young people who want to take out a mortgage loan is to apply a lower interest rate. This is the case of Kutxabank: its Young Mortgage has an interest of 2.81% the first year, Euribor plus 0.39% the following years and Euribor plus 0.49% when one of the holders turns 35; on condition of domiciliating the payroll and taking out home insurance and a pension plan. Your Variable Mortgage, on the other hand, has a rate of 2.91% for the first year and Euribor plus 0.49% for the following years to meet the same requirements.
The same happens with the Bankinter Young Mortgage, whose interest is 2.45% fixed for the first year and from Euribor plus 0.70% for the following years. The Variable Mortgage from the same entity, for those over 35 years of age, has a fixed rate of 2.50% for the first year and from Euribor plus 0.75% for the following years. In both cases, the interest is conditional on opening the entity's Payroll, Non-Payroll or Professional Account, taking out two of its insurance policies (home and life) and opening a pension plan.
From the comparator they affirm that there are also some entities that offer mortgages for young people with a longer repayment period so that the holder can pay more affordable installments. For example, the aforementioned Bankinter Young Mortgage can be repaid in up to 40 years, while the amortization period of the rest of this bank's mortgage loans is up to 30 years.
In practice, there are also other banks that can offer young people longer terms, lower interest rates or other advantages that, a priori, do not appear in the conditions of their mortgage loans. According to HelpMyCash analysts, there is room to negotiate, especially for young people who have a high income and work in leading companies or in rising sectors such as technology or computing.
The chances of obtaining better conditions can be even higher if you hire the services of a mortgage broker. This professional, thanks to his greater knowledge of the financial market and his contacts within the sector, knows which entities he should go to and how he should negotiate to obtain the most advantageous offer for his client.