“The Challenge of High House Prices and 100% Mortgages: Solutions and Requirements”

He high house price It is one of the strongest barriers that prevent our children from ‘leaving the nest’ and buying not just the house of their dreams, but a decent place to live. According to data from Fotocasa, an 80-square-meter flat in Spain today costs an average of 166,880 euros, something that is not available to everyone, especially in a context of interest rates shot, job insecurity y lack of savings.

For all those young people and families with dependent minors who want to buy a home but do not have enough savings, there is the new line of 20% guarantees for the mortgage through the Official Credit Institute (ICO). But you also have to have the 100% mortgages financing offered by some financial institutions.

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As a general rule, banks tend to finance up to 80% of the purchase of a home, while buyers must provide a 20% of your savings for the acquisition of a property, which is commonly known as Prohibited. However, some entities do offer mortgages that cover the entire purchase price of the home or the appraised value, designed for those people who do not have enough savings to pay for that entry. The problem is that they impose strict requirements to access this type of mortgage.

Even if they are 100% mortgages, you must have a minimum saved for the Extra expenses that the purchase of a home entails, that is, the expenses of the notary, registry or agency, among others, which in the end do suppose the 10% of the value.

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The bank lends 100% for financing, so the monthly fees will be more high. That is to say, there will be a high debt rate. In addition, he return period of the mortgage can be longer, reaching 35 years or more; and you can even fall into a bubble mortgage, that is, when the debt you have with the bank is higher than the price of the property at that time.

It must be borne in mind that not all banks have these products, and those that do offer them have certain authorization requirements. solvency and debt before granting it. “Getting a loan of 90% or higher will depend on whether the entity finds your profile attractive and your ability to negotiate better conditions”, explain the experts of the financial comparator HelpMyCash. In any case, the most common conditions are these: