When you think of a mortgagemost people relate it to the money the bank lends to buy a house, but the truth is that there is more modalities depending on its purpose. When talking about types of mortgages, the usual thing is to differentiate between the different options based on the interest rate, fixed, variable or mixed, but there is much more.
Although in recent times due to increases in interest rates they have increased the number of cash purchase and sale operations, Mortgage financing continues to be an option for a large number of Spaniards who do not have enough savings to buy or renovate their home.
Taking out a mortgage is not an easy decision, and many factors must be taken into account to choose the one that offers the best conditions, and meet a series of requirements that most banks request to finance their clients. For all this, it is important to know the types that exist on the market and thus be able to make the most informed decision possible.
More types of mortgages will be requested in 2024
From Real Estate Credit Union (UCI) They have prepared a report to reveal the 8 types of mortgages that will be most in demand in 2024 depending on the profile of the mortgage holder:
Mortgage for young people
One of the groups with the most problems in accessing housing are young people who can access mortgages with special conditions for those under 35 years of age who are purchasing their first home, and who “they are characterized by higher financing percentages and longer repayment periods”according to the deputy director general of UCI.
Mortgage for non-residents
These loans are intended for people who do not have residence in Spain, According to a UCI study, foreign buyers account for 22% of home purchases in our country, and these mortgages will allow them to obtain special conditions for their non-resident status.
Green mortgage
Although they are not yet well known, these mortgages give bonuses in interest rates or in initial capital contributions to those people who opt for purchase, renovation or construction of a sustainable home, and they will increasingly have more weight in the financing of the coming years.
Mortgage for second home or investment
There are many people with money saved who buy a second home as an investment to obtain profitability by renting, and they choose to finance a part of the purchase. These mortgages They do not have the same conditions as a mortgage to finance a habitual residence, as explained by UCI “These are solutions that, although having many similarities with a conventional mortgage, tend to have shorter repayment periods and lower financing percentages.”
Self-construction mortgage
They are known as self-promoting mortgages, specifically designed for people who own land and are going to build your home from scratch.
Although, according to experts, these are mortgages that are requested in a small percentage, they have suffered a rebound since the pandemic.
Mortgage reform
It is a little-known alternative, but it allows financing the renovation of the home using the same property as collateral for the mortgage, so that finance the works in the long term at mortgage interest ratescompared to the alternative of requesting a personal loan.
“This financial solution can mean significant savings for buyers who, otherwise, usually resort to consumer loans to assume the cost of these actions”explains the deputy director general of UCI.
Mortgage refinancing
With the increases in interest rates, many people are looking for the option of improve the conditions of your mortgage, So they decide to change their home financing from one entity to another that offers more favorable conditions.
Reverse mortgage
Reverse mortgages are loans that They are granted to people over 65 years of age, in which the bank pays the applicant a monthly rent in exchange for the delivery of their home, and according to José Manuel Fernández, deputy director general of UCI, “It is going to become a solution to be considered by an increasingly aging population with pensions that do not cover all their needs.”
2024-02-06 20:31:22
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