The difficulties that young people encounter when buying a home are well known: lack of savings, little job stability, lower purchasing power… But what about those who do have sufficient solvency to undertake the operation? Can they get a mortgage with good conditions?
According to the financial comparator HelpMyCash.com, there are banks that sell exclusive mortgages for young people with very attractive conditions: low interest, financing higher than the usual 80% of the price of the home… And many of them are willing to improve their offer if the applicant’s profile is good.
Fixed rate: Ibercaja
Ibercaja, for example, has a very competitive offer at a fixed rate. His Mortgage Let’s Go YoungFixedavailable for those under 36 years of age, has one of the lowest interest rates on the market: from 2.99%. Of course, to achieve this you have to domiciliate your payroll and receipts, use a credit card, take out two insurance policies from the entity (home and life) and invest in one of its systematic contribution plans.
Another advantage of this mortgage loan is that it allows you to finance up to 95% of the purchase of a primary home, instead of the 80% that most banks offer. As for the minimum amount, it must be at least 100,000 euros. Its repayment period is somewhat shorter than average: 25 years maximum.
Variable type A: Kutxabank
At a variable rate, however, HelpMyCash analysts highlight the Kutxabank Young Mortgage, available for those under 35 years of age. Your interest is 2.49% fixed for the first 12 months, from Euribor plus 0.39% until a holder turns 35 and from Euribor plus 0.49% for the following; conditional on the direct debit of the payroll, the contracting of home insurance with the bank and the contribution to one of its pension plans.
Kutxabank, like Ibercaja, offers to finance up to 95% of the home purchase for young people, as long as it is to be used as a habitual residence. The maximum repayment term of this mortgage is a maximum of 30 years.
Offers with public endorsement
It is also important to highlight that various banking entities offer to finance between 90% and 100% of the purchase of the home if the young applicant meets the requirements to qualify for the guarantees offered in various autonomous communities: imagin, Banco Santander, Unicaja…
imagin, for example, offers a fixed mortgage with financing of up to 90% to young people who can request a regional guarantee in the Community of Madrid, the Balearic Islands, Andalusia or Castilla y León. In all cases, the interest applied is from 3.10% for a term of 30 years, which can be obtained in exchange for direct debiting the payroll.
In addition, soon you will be able to request Government endorsement to obtain a mortgage that finances up to 100% of the purchase of a primary home. From HelpMyCash they have created a free requirements simulator which allows you to find out if the necessary conditions are met to access this measure.
Negotiating is key
In any case, the comparator recommends not requesting a mortgage from just one financial institution. The more banks visited, their analysts say, the greater the likelihood of getting a competitive offer, especially if the client enjoys a good economic situation and negotiates for better conditions.
In that sense, hire the services of a mortgage broker can be advantageous. And this professional contacts several entities on behalf of his client and is in charge of negotiating with them to obtain the best possible conditions: lower interests, fewer commissions or associated products, financing close to 100% of the price of the home. …