Being young is an added difficulty to take out a mortgage and buy a home. Mainly, because younger people have been in the labor market for less time and, in many cases, have not been able to save the down payment of 30% of the price of the apartment that many banks require to contribute to approve the operation. It should be remembered that, in general, entities finance a maximum of 80% of the acquisition, so the applicant must have their own funds to pay the remaining 20% ??plus an additional 10% that corresponds to the cost of the purchase and sale expenses ( taxes, notary fees, etc.).
However, there are several banks that offer to finance more than 80% of the operation so that young people can access their first home without having to contribute so many savings. In addition, according to the financial comparator HelpMyCash.com, its exclusive mortgages for young people have very competitive conditions, whether the interest is variable or fixed.
For example, in the opinion of the comparator analysts, the Kutxabank Youth Mortgage, whose rate is variable, is the best exclusive offer for young people available in all of Spain for this modality. Its interest is 2.80% during the first 12 months and from Euribor plus 0.39% from the second year and until any of the holders reaches 35 years of age. From that moment on, the interest will be from Euribor plus 0.49%, which is well below the average (Euribor plus 0.70%).
As of the second year, yes, it is necessary to contract several products or services from the entity to access these interests: domicile the payroll of the holders for a combined value of at least 3,000 euros per month, subscribe to Kutxabank home insurance and contribute a minimum of 2,400 euros per year to a pension plan or EPSV of the bank. If none of these requirements are met, the applied rate will rise by one percentage point.
Regarding the amount, Kutxabank offers to finance up to 95% of the purchase or appraisal value of the home that is intended to be purchased (the lower of both), provided that it is to be used as a habitual residence. The maximum repayment term of your Youth Mortgage is 30 years.
At a fixed rate, on the other hand, the best mortgage exclusively for young people and available throughout Spain is the Vamos Joven Fija Mortgage from Ibercaja, according to HelpMyCash. It has an interest of 3.25%, significantly lower than the average (3.50%), which is subsidized by up to one percentage point for direct debiting the payroll of the holders, direct debiting three bills, using a bank credit card, contracting your home and life insurance and subscribe to a systematic contribution plan.
This product is exclusively for young people under 36 years of age. It allows financing up to 95% of the purchase of a habitual residence (or its appraisal value if it is lower), provided that the amount lent is not less than 100,000 euros. Its repayment period is 25 years, which is somewhat shorter than that of most mortgages granted in Spain (up to 30 years).
It should be noted, however, that there are banks that can match or even improve these conditions if the applicant has a good profile and is willing to negotiate. There are even entities that have signed agreements with certain autonomous communities (the Community of Madrid, Castilla y León or Murcia, for example) to offer special mortgages to young people in the region.
For this reason, from HelpMyCash they advise requesting the mortgage from several entities and negotiating with each of them to try to improve their conditions. And if the applicant does not have time or financial knowledge, they have the option of hiring the services of a mortgage broker, who will take care of all the paperwork and work to try to get the lowest possible price.
