Santander MyInvestor Ibercaja young people mortgages - Santander, MyInvestor or Ibercaja are launched for young people: these are the mortgages they are offering and that finance up to 95% of the housing.
Mortgages are one of the star products of banking.
Loans to buy a home involve long-term relationships with the client and a greater bond since, in many cases, they are usually associated with the hiring of other products.
With housing in a bullish phase, banks are taking advantage of the economic recovery to bet on these loans at a tough time for business. In this way, the entities are offering specific products for the younger public where a greater amount of the value of the home is financed.
The economic recovery that the economy is experiencing after the blow experienced by the COVID-19 pandemic is being accompanied by an increase in the price of housing and sales transactions.
Santander MyInvestor Ibercaja young people mortgages
After the break in 2020, last year the purchase of housing returned to reactivate and in the absence of closed figures everything indicates that they were in the environment of the number of purchases that were closed in full bloom.
The latest data from the INE show that home purchases grew by 22.2% in October 2021 compared to the same date a year earlier. In total, they totalled 46,242 operations, the highest number since 2007.
In addition, parallel to this increase in operations there is an increase in the price of these sales.
Experts point out that the price will continue to rise and continue the bullish path it took after the sharp fall experienced in the Great Recession.
In this context, young people are an attractive target audience for banks within mortgage products.
But they have a big problem to be able to access the home in ownership and is the lack of savings to be able to cope with the payment of the entrance. With these, the entities are expanding in some cases the capital to be financed that after the outbreak of the real estate crisis was around 80% of the value of the house.
Caution on Santander MyInvestor Ibercaja young people mortgages
The bank has been showing caution in the capital it financed after the excesses experienced during the golden age of the brick where credit flowed in abundance and the entities provided financing for up to 100% of the value of the home. Now, it has not gone back to this extreme, but entities have started to open their hands in some cases.
Keep in mind that offering loans above 80% of the value of the home has a penalty on the capital of the banks. This is another reason these offers are not being massive but focus on specific profiles.
Among the entities that are offering special products for the younger public is, for example, Santander. The entity chaired by Ana Botín launched a proposal in 2021 of a new young mortgage for children under 35, which allowed the financing of up to 95% of the lower value between appraisal and sale.
This proposal was focused on standard variable or fixed rate mortgages with a maximum repayment term of 30 years. In the conditions, the bank pointed out that it was necessary to provide a personal guarantee that would be extinguished 5 years after the formalization of the mortgage.
Interests behind Santander MyInvestor Ibercaja young people mortgages
In addition, to obtain a subsidized interest, the entity offered different options such as direct debit payroll, the use of credit cards or the hiring of some insurance.
Santander's proposal was limited to 1,000 mortgages and once the quota has been filled, the bank is studying whether it will launch this type of product again.
In this line, Bankinter has also joined the possibility of financing more than 90% of the value of housing in some mortgages and only for young customers, according to Invertia. This offer would also be limited to a specific amount of new mortgage loans.
For its part, MyInvestor has also launched a mortgage Without Entry with which it finances up to 95% of the house. The loan for the purchase of housing of this neo bank participated by Andbank España, El Corte Inglés Seguros, AXA España and family office as Casticapital and Alligrupo is not restricted to young people but can be hired at any age provided that the required salary conditions are met and that it is to acquire first home.
This mortgage finances up to 95% of the house at a fixed interest rate of 1.99% TIN (2.18% APR) for a maximum term of 30 years. It is available from 100,000 euros and requires a minimum monthly income of 3,000 euros.
Customers comment Santander MyInvestor Ibercaja young people mortgages
Medium-sized banks also offer lower interest rates to their younger customers, although in general the proposals do not finance more than 80% of the value of the home.
In the case of Ibercaja, the entity offers a young mortgage both variable and fixed rate. These housing loans provide up to 90 per cent of the price of housing for children under the age of thirty-five. This is the Vamos Joven Variable mortgage and the Vamos Joven Fixed mortgage with a term of 25 years to repay the loan.
For its part, Unicaja also has a mortgage loan focused on this public. The Variable Young Mortgage can be contracted by people up to 35 years old, although in this case it limits the amount to be financed to 80% of the value over a period of 30 years. In the case of the CajaSur Youth Mortgage, the conditions are similar. The entity finances up to 80% of the value and the maximum payment term is 30 years.
Kutxabank also has in its product portfolio a young mortgage aimed at customers under thirty-five with a term of up to 30 years to pay back the money and financing up to 80% of the value of the home.
# Santander MyInvestor Ibercaja young people mortgages
