Although the most common type of mortgage in Spain is usually associated with the type of interest rate (fixed or variable), banks also have different products that vary according to differing factors, which is the case with mortgages for young people. These are usually a special financial package for those who want to become independent and need financing.
At WeRelocate BCN we tell you how you can get your first home as a young person.
Mortgages for young people are designed for those aged between 18 and 35, (although there are some banks that set a different maximum age), and are offered for the purchase of a first home.
The main advantages provided by mortgages for young people are:
➔ The possibility of obtaining financing for up to 90% of the property.
➔ The availability of an initial capital grace period.
➔ Subsidised interest rates.
➔ Repayment terms can be up to 40 years.
➔ Depending on the bank, this type of mortgage is offered without arrangement fees.
➔ Being eligible for different government subsidies.
Not all banks offer this type of mortgage, nor are they of the same nature, so it is always advisable to visit different banks and compare the different offers they have available.
Concerning the necessary requirements to apply for a young person’s mortgage, apart from being under 35 years old and that the property to be financed is your first home, it is also necessary to have a stable employment contract or, failing that, to have an additional guarantor. Some banks require that you sign up to additional financial products before granting the mortgage, and in some cases, if you are not able to finance 100% of the property, you will need to have prior savings.
It is also important to know that, even if you meet these requirements, it is not compulsory to take out specifically a young person’s mortgage. A good idea is to compare other types of mortgages to choose the one that best suits your circumstances and your budget.