Mortgages for young people: everything you need to know
Category: Mortgages
Youth mortgages are a type of loan that some banks offer to people who are between 18 and 35 years old. The conditions are somewhat different than usual to fit the profile, which in most cases coincides with a lack of savings, no seniority, etc.
What are the keys to this typology?:
- Financing of more than 80%. This percentage is usually the most common, but in mortgages for young people it is around 85-90%, and can even reach 95%. As we said, these have not been in the labor market for too long, so they do not have the amount for an entry.
- Longer amortization period. That is, longer time to return the money. 30, 35 and even 40 years old.
- Associated products also tend to have an important space: home insurance, life insurance, health insurance, payroll direct debit, etc. The entities see in young people an opportunity to sell these items, since the majority do not yet have them hired.
Do you have commissions?
They may have commissions such as opening fees. Sometimes it is a minimum amount and other times it is a percentage of the total operation. The other most common fee in mortgages for young people is the cancellation or novation fee, although it is becoming less frequent.
What guarantees does the bank usually request?
Many times they request guarantors as additional guarantee to cover themselves in case of non-payment. Normally these people are the parents of the applicants.
We hope to have helped you with this information. If you have any questions, ask us!
