Buying a home without taking out a mortgage is practically an unattainable fantasy, especially now, with skyrocketing prices. But it is not easy for the bank to grant it to you either. When you are young because you do not yet have income that provides security to the entity. And when you are older, because the possibility of repay the loan during life it becomes more difficult. Be that as it may, banks take into account the age at which a mortgage is requested.
Let’s take an example: a person who is 55 years old takes out a mortgage for 25 years. The conclusion is that he would end up at 80 years old, retired, repaying the loan from his pension. They wouldn’t see it clearly. Banks add the age of the client to the term of the mortgage. If the result is greater than 75 years, they doubt. That is, if you are 50 years old, you have 25 years to repay the mortgage. If you are 65, your term is 10.
Related news
In these situations, sometimes it is decided to add a second person as holder of the mortgage. They want her to be younger, so that if you can’t pay off the debt, she can do it. On the other hand, what a bank can request is life insurance, with the aim of making sure that the money returns to its place.
Added to all of the above is the fact that the Bank of Spain recommends a maximum term of 30 years to apply for a mortgage individually. So, following this criterion, the maximum age to do so would be 45 years. From there, problems can arise. The reality is that the law does not establish a general rule for these situations, so each bank is free to implement its own criteria.
2024-01-10 11:51:21
#mortgage #bank #complicated #age
