The 18 million euros that the Community of Madrid has put on the table to guarantee mortgages for young people up to the age of 35 could run out before the end of the year. Caixabank, Santander and Ibercajathe three entities that grant them ensure that the program is having success and anticipate that the deposit will end in December, only three months after it was put into circulation.
Each of these three banks collected in September 6 million euros which act as a guarantee fund to guarantee loans up to 95%. The entities grant 80% financing and the Community of Madrid the other 15% with the aim of facilitating the purchase of a house for those who do not have sufficient savings.
Caixabank, Santander and Ibercaja, which have been awarded the “My first home” programme. promoted by Isabel Díaz Ayuso in September, having an extensive network of offices in the Community of Madrid, they agree that the lot they have received is running out.
From the Ministry of Housing they calculate it in total it can cover up to 1,000 mortgages but the number of applications received is five times higher. Ibercaja alone received around 1,500 requests for information in just over a month via the web and through the branch network.
The entity assures that since they signed the agreement with the Community of Madrid, the number of requests for information they have received to benefit from the program has been much higher than expected, in fact, the operations they are already processing exceed the amount awarded by 50%..
Ibercaja, which already had a mortgage loan for its younger customers where it guaranteed up to 90%, points out that with the impetus of the Community of Madrid program they are reaching to a greater number of people those who can finance the purchase of a first home.
Santander, which was also the first of the three entities to start marketing these mortgages in early October in its more than 400 branches in the Community of Madrid, points out that the production rate is very good.
And Caixabank, which offers them through its online bank dedicated to young people, Imagin, even anticipates that by the end of the year the deposit runs out that the Community of Madrid has awarded them.
The Ministry of Construction, which monitors the mortgages granted on a monthly basis, had agreed with the institutions that, if after the first three months one of them has not used up at least 20% of the depositthe financial entity would be considered low performing and could proceed to withdraw the funds to distribute them among others.
However, this will no longer be necessary. Despite the increase in interest rates and the increase in house prices, young Madrilenians are taking out mortgages. Once the funds are exhausted, Caixabank, Santander and Ibercaja will have to wait for the CAM to increase the contribution since its goal is for it to become an annual aid, even if it will already be with a new award in 2023.
The three CAM requirements
The Community of Madrid establishes only three requirements to be able to do this guarantee the loan up to 95%that the value of the property does not exceed 390,000 euros, taking as reference its appraisal value or the purchase price.
Furthermore, that the interested parties can demonstrate their legal residence in the Community of Madrid continuously during the two years preceding the date of the loan request and that they do not own another house in the national territory.
