Banco Santander will be the first financial institution to offer its clients up to 35 years of age or with dependent minors the possibility of accessing a guarantee from the Official Credit Institute (ICO) to purchase their first home. The public line, endowed with 2.5 billion and which provoked criticism among Government partners, seeks to reach some 50,000 beneficiaries and generate the acquisition of another 50,000 properties, according to calculations by the Ministry of Housing. The objective is to support the real estate market and support access to mortgage loans from the public bank, in collaboration with private entities.
The agreement for Santander to join the line of guarantees was signed today at the entity’s headquarters in Madrid and was attended by the Minister of Housing, Isabel Rodríguez; the president of the Official Credit Institute (ICO), José Carlos García de Quevedo; and the CEO of Santander Spain, Ángel Rivera. “As a public defender, I am proud that our country can guarantee and support access to housing for young people and families,” Rodríguez highlighted, highlighting that “the impossibility of accessing the rental market or home ownership “It is one of the main concerns of the Spanish people.”
The Minister of Housing has also thanked Santander for its willingness to adhere to the agreement to facilitate guarantees. In addition to today’s signing with Santander Spain, the department led by Rodríguez has signed similar agreements with Caja de Ahorros de Ontinyent, Arquia, Unión de Créditos Inmobiliarios (UCI), EVO Banco and Ibercaja. In the coming weeks it plans to sign new agreements with other important financial entities.
ICO guarantees will be free, without commission for the beneficiaries and at no cost to the banks. The aid may cover up to 20% of the loan amount, reaching up to 25% in those cases in which the home purchased has an energy rating of D or higher.
To access them, beneficiaries may not exceed income of 37,800 gross euros per year (4.5 times the IPREM). If the home is purchased by two people, the income of the two purchasers together may not exceed the sum of the limit established for each one.
Since its approval in the Council of Ministers, the Ministry of Housing has increased some measures to promote access to guarantees. Thus, the limit increases by 2,520 euros per year (0.3 times the IPREM) for each dependent minor. Single-parent families, for their part, will have an additional 70% margin.
The guarantee to purchase a home will be valid for 10 years, although banks and clients may extend it. The term to formalize the loans that qualify for this line of guarantees will end on December 31, 2025, establishing the possibility in the agreement of being able to extend the term until 2027.