The youth mortgages they became very popular in the years before the real estate bubble burst. Savings banks were the most active, offering minimal spreads. Currently, with mortgages as the flagship product of banks, andThese mortgages are reinvented.
And it is that the young client is very attractive for banks. As Simone Colombelli, a mortgage expert at iAhorro, recalls.
This is because you hypotheses they are loans of such long duration allow tie the client with the entity for many years and, in most cases, this implies that they contract another series of products during this period of time: accounts, insurance, cards …
In general terms, “it is a profile from which much more profitability can be obtained than with others”, insists Colombelli.
For this reason, they are improving financing conditions and lowering the interest on loans aimed at this type of client.
Lower spreads and higher debt
Regarding the specific offers, the Cajasiete Young Mortgage It charges a variable interest of Euribor plus 0.95 percent (compared to Euribor plus 0.99 percent of its standard offer), but also has somewhat less demanding linkage requirements.
Those under 35 can get it with the best interest rate by direct debiting an income of 1,200 euros, while the general public has to reach 2,500 euros.
However, the offers of Cajasur, Kutxabank and Banco Santander they ask the same requirements of connection to the general and young population.
The advantage in the first two cases is a lower interest rate, thus, for example, in the case of Kutxabank, it discounts an additional 0.05 percent on its mortgages to the best 35 years.
Santander, for its part, grants a higher percentage of the appraised value of the home, giving up to 95 percent of the appraised value.
Fewer specific offers than years ago
Despite these offers, “most banks have a single offer for all audiences,” clarifies Estefanía González, Kelisto’s personal finance spokesperson.
Now, it should be remembered that mortgage grants are negotiated on a case-by-case basis, and that issues such as return time or bonding requirements might be more lax for younger customers.
In the past, Caja Madrid offered a differential of 0.25 percent for those under 35 years of age. The same as the old BBK, which was later integrated into Kutxabank.
What should a young person looking for a mortgage look for
The young client is not usually in the best financial moment of his life.
For this reason, you should look for a mortgage that allows you access comfortable quotasThat is, Colombelli emphasizes that it offers “the maximum percentage of financing possible and that they can return in a very long period of time”.
A fixed mortgage 30 years and with a financing greater than 80% it would be the best option.
For his part, González adds that “the mortgage that suits the youngest is a low-interest mortgage that does not charge commissions or requires too many bonding requirements.”
When choosing between the fixed and the variable rate, in addition to what has already been said, it should be noted that hiring a variable mortgage can be a good option if it is going to be repaid in a short period of time (taking advantage of the fact that the Euribor is in negative ).
For a longer repayment period, a fixed mortgage could be more interesting, since it grants the peace of mind of knowing that the same thing will always be paid.
The evolution of the Euribor is decisive
The fact that among the youngest mortgaged there are doubts about whether to choose a fixed-rate or variable-rate mortgage is closely related to the evolution of the Euribor.
Thus, before the bursting of the mortgage bubble, variable rate mortgages were the clear winners, but since the Euribor is at a minimum, and there are no forecasts that it will leave the price in negative in the short term, it makes fixed-rate mortgages an alternative.
And more, because the difference between the two was narrowing. Thus, variable rate mortgages usually apply an exit interest higher than the spread for one or two years.
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