Castilla Y León Government Signs Agreement to Facilitate Access to First Home Ownership for Young People

This morning, the Minister for the Environment, Housing and Territorial Planning of the Castilla y León Government presided over the signing of the agreement between the Government, through Somacyl (Public Environmental Society) and nine financial entities, for the concession of guarantees aimed at facilitating the access of young people to their first home under ownership. The Board will guarantee financing of up to 17.5% of the price of the home, a percentage that is added to the mortgage loan granted by banks of up to 80% of the price of the home.

With this guarantee from the Board, young people up to the age of 35 who want to buy their first home will only need 2.5% of the value of the property for the entry. Interested young people must submit to Somacyl the request for certification accrediting compliance with the requirements, preferably electronically using the form launched as of today on the TUYA program web portal.

The agreement signed this morning with the presence of the director Suárez-Quiñones -accompanied by the CEO of Somacyl, José Manuel Jiménez; the General Director of Housing, María Pardo; the general director of the Treasury and Financial Policy of the Board, Fernando Vallelado, and the representatives of the financial entities Caixabank, Banco Santander, Unicaja Banco, Caja Viva Caja Rural, Caja Rural de Zamora, Ibercaja Banco, Cajamar Caja Rural, Caja Rural de Salamanca and Caja Rural de Soria- will guarantee up to 40 million euros in mortgage loans.

This year, 1,000 young people will have the possibility of accessing their first home with an entry of only 2.5% of the sale value and with mortgage loans in which the Board guarantees the financial institution up to 17.5%. of the loan. With this measure, the Junta de Castilla y León will favor the emancipation of those young Castilians and Leonese who do not have enough savings to obtain a mortgage.

The Official Gazette of Castilla y León today publishes the Order regulating the line of guarantees ‘My first home’ to promote access to housing for young people under ownership, the purpose of which is to offer temporary and partial coverage for the financing they need for their acquisition.

Individuals who are going to acquire their first home with the subscription of a mortgage-backed loan and who meet the following requirements may benefit from this line of guarantees:

• Being 35 years of age or less.
• That the purchase price of the home is equal to or less than 240,000 euros (without expenses or taxes); reside in the Autonomous Community; constitutes habitual and permanent domicile of the coexistence unit and is the first dwelling that is accessed as property (they are admitted for free dwellings and for privately promoted protected dwellings, whether they are new development or second-hand)
• General income limit 5 IPREMS, with which the person who lives alone cannot exceed 42,000 euros per year; the couple or the couple with a child the 49,412; the couple with two children and general large families 52,500 and special large families 56,000 euros.
• Not own another home owned with certain exceptions (cases of separation or divorce, etc.)

These guarantees provided by the Board will be compatible with any other aid for home acquisition provided that it does not exceed 100% of the cost of the operation and the regulations governing aid and European Union law so allow. In this case, the aid must be used for the corresponding full or partial repayment of the guaranteed financing mortgage loan.

Interested young people up to 35 years of age must submit to Somacyl the request for certification accrediting compliance with the requirements, preferably electronically using the form launched from today on the web portal YOURS

Formalization of loans

The corresponding loans must be formalized, where appropriate, with the financial institution chosen by the applicant, before which the certification issued by Somacyl will be presented, and will have, from its formalization, the guarantee of SOMACYL.

Agreement of the Board, through Somacyl, with financial entities

The agreement signed this morning between the Junta de Castilla y León, through the Sociedad Pública de Medio Ambiente, and the nine financial entities mentioned above includes the characteristics and requirements of the temporary and partial guarantee in relation to mortgage financing.

The agreement sets the maximum amount of the Board’s guarantee at 40 million euros and a period of validity until December 31, 2023, extendable for periods of one year up to a maximum of four.