Financing the purchase of a house is an almost impossible mission for most young people, given the high savings necessary to obtain a mortgage, among other reasons, such as lower job stability and low salaries. With the idea of facilitating access to the housing market for this group, Ibercaja has announced that it will finance up to 95% in any of its mortgages from the ‘Vamos’ range to clients under 36 years of age.
The Zaragoza entity assures in a note that it wants to “help” young people by financing up to 95% of the appraised value or sale of the property. Usually, the entities grant up to 80%, which forces them to have the remaining 30% (20% of the price of the house to which another 10% must be added for taxes and expenses associated with the operation).
At the same time, adds Ibercaja, clients will be able to benefit from an improvement in the mortgage interest rate of 0.15%, as long as one of the holders is less than 36 years old.
These advantages will be available in either of the two types of the ‘Vamos’ mortgage, both at a fixed rate and at a variable rate. The standard fixed rate offer is 2.26% APR, fulfilling conditions. At a variable rate, it offers 1.99% the first year and a spread of 1.95% plus Euribor thereafter. It is necessary to direct the payroll, take out home and life insurance and make periodic contributions to one of the investment funds marketed by the entity.
At a time when there is strong competition between entities to attract mortgage clients, Ibercaja takes a step forward which, as it explains, is part of the entity’s commitment and objectives in ESG matters, focusing on the social part.
Last April, Santander SmartBank, Banco Santander’s youth banking model, also launched its new Young Mortgage, which allows financing up to 95% of the lowest value between appraisal and sale. The entity thus intends to facilitate access to housing for 1,000 clients up to 35 years of age. In this case, it is necessary to provide a personal guarantee that will expire 5 years from the formalization of the mortgage. For its part, Kutxabank has the Young Mortgage for people between 18 and 35 years old.