The Spanish Government has given the definitive green light to ICO guarantees for mortgages. According to the Minister of Housing, the agreement with the Official Credit Institute will be signed in the coming days, and it is expected that banking entities will begin to adhere to this measure starting in May.
It is estimated that around 50,000 young people and families will benefit from these guarantees, which will allow them to access mortgages with 100% financing. However, to access these guarantees, certain requirements must be met. From the financial comparator HelpMyCash.com, it stands out that, among the eligibility criteria, there is age, income and family situation. For those individuals under 35 years of age or couples with minor dependent children, and whose income does not exceed 37,800 euros individually or 75,600 euros in the case of couples, these guarantees represent an opportunity to buy their first home.
But what happens to those who do not meet the requirements established for ICO guarantees? From HelpMyCash.com, they assure that there are other ways to obtain mortgages that cover up to 100% financing without depending on government support.
Entities such as Ibercaja, Santander or Unicaja already offer mortgages designed specifically for young people, with financing options that exceed 80%. In addition, many financial institutions offer 100% mortgages for those who choose to buy properties from banks.
It is worth remembering that, during the 2008 crisis, a large number of homes were repossessed, which led banks to accumulate a considerable supply of properties for sale. In order to get rid of these assets, banks offer more favorable financing conditions for their acquisition. Bankinter, Deutsche Bank and Santander are some of the entities that offer this possibility.
Another viable option is to contact a mortgage broker. These professionals are in charge of searching and negotiating the best mortgages based on the profile of each applicant. “Mortgage brokers have a deep knowledge of the market and can obtain 100% mortgages even with entities that do not offer these options to the general public,” they explain from HelpMyCash.
It is important to note that there are both paid and free brokers. In the first case, the fees vary between 3,000 and 5,000 euros, although depending on the entity, they may also establish commissions of between 1% and 5% on the amount of the mortgage loan contracted.
HelpMyCash also warns that, in all cases, applicants must meet a series of requirements to obtain a 100% mortgage. This includes demonstrating a stable work history of at least two years, having sufficient income so that the mortgage payment does not exceed 35% of income and having savings to cover the expenses and taxes associated with the purchase of the home, which represent approximately 10% of the total value.