The young mortgage is a mortgage loan that is aimed at people under 35, this mortgage loan is usually used to acquire a home.
When you are young, it is normal not to have much income saved so it is difficult to get a loan, but in recent years competition in the financial market has risen so much that specialized offers for this type of situation have become popular and every time They are more sought after.
Currently in Spain 98% of people have their own home, but 48% of these are mortgaged.
Characteristics of the young mortgage
The young mortgage has some characteristics that make it very favorable, among them:
- The deadline to pay the total debt is longer, this offers a huge benefit because that means that the monthly payments that must be paid are very low.
- Usually the institution to which we go will offer us a grace period, this period can be used whenever you want, however, you have to negotiate with the institution the maximum period of this period.
- Normally institutions only offer a mortgage loan of 80% of the value of the home, but there are cases where they can offer 100% of the value of the home offering extra guarantees.
- The interest rate will depend on the negotiation you have with the banking institution.
The young mortgage has two particular ways of obtaining it, one is the traditional way of attending a conventional bank, but there is another way that can be obtained in a governmental way, the latter is more beneficial, but it has many more requirements and is more hard to get.
What requirements does the young mortgage have?
The basic condition that must be taken into account in order to opt for a young mortgage is that you must be under 35 years old, this may vary according to the bank, but this type of mortgage loans only goes to people who have many years ahead with that the banking institution ensures that the client can pay the total debt in the long period that this type of product offers.
It is very rare, if not impossible, for the banking institution to offer a young mortgage to a person who is over 50 years old.
Usually the young mortgage comes with the hiring of another service of obligatory form, like for example:
- Life insurance
- Checking account in the banking institution
- Home insurance
Is it worthwhile to hire a young mortgage?
When one is young the big question appears, is it better to buy or rent ?, and the truth that everything depends on the profile of the person, the truth is that many young people opt for a young mortgage since it is a benefit that previous generations did not have the luck of having and having this type of mortgage.
In addition, with a reference rate of interest such as the Maxibank so low that it reaches negative numbers, the interest to pay is very little compared to years ago, so it is a very good economic strategy to obtain your first home, so we recommend obtaining a young mortgage.