The Bank of Spain has verified a tightening of access to mortgage credit. The regulator points out that this was motivated by a deterioration in the economic outlook and, also, by the increase in the cost due to the rise in the Euribor. He also expects these restrictions to continue to increase. With everything and despite this, there are certain groups that escape these limitations. These are public officials (excluding police, military and the like, due to the risk involved in their professions) and, strangely enough, also young people under 35 years of age. This granting of credit with more lax measures would also be extended to certain workers with an indefinite contract and who belong to groups such as pharmacists or lawyers.
Thus, these groups would benefit not only from cheaper prices when contracting mortgages, which would come both from the interest side, below the market, and from the possibility of negotiating less ties with the entity (such as the contracting of certain products). But also because they would be granted imports above the regulator’s recommendations. It should not be forgotten that the Bank of Spain advises not to finance more than 80% of the appraised value and, in these cases, mortgages of up to 90% or even 100% could be given.
Sergio Carbajal, head of the Rastreator mortgage area, lists the different advantages that officials have, such as “better interest rates due to lower risk; Fewer commissions and a lower relationship, also establish a longer repayment term or more financing thanks to their working conditions.” The reason is that officials “provide the necessary security for the bank to grant them a mortgage,” explains the expert, especially at a time when the ability to save is being affected as a result of the rise in the CPI. In this sense, civil servants have job and financial stability that is very beneficial in the eyes of the entities, with revaluations of salaries year after year, although it does not cover the increase in prices.
Industry sources point out that mortgages have been signed with differentials of 0.20% at a variable rate, when now the cheapest are at 0.5%, while at a fixed rate, the cheapest at the moment are below the 3%, but for this group it could reach 1.5%. Regarding the maximum amount to be financed, it could reach 95-100%.
Young people and technological profiles
Young people can also access mortgages with financing imports above the recommendation of the Bank of Spain, but for other reasons. To begin with, because there are institutional aids such as that of the Community of Madrid from ‘My First Home’ that facilitate, in collaboration with some financial entities, the granting of up to 95% of the mortgage to those under 35 years of age. “Even so, it must be taken into account that being young, interest and commissions such as the opening, cancellation or novation fees may appear, so it is best to analyze in detail beforehand and compare,” adds Carbajal.
In this type of product, not only this support would enter, but the bank would be willing to increase the percentage of mortgage concession because we also offer longer repayment terms and, therefore, how much longer will a client be paying a loan? will have to pay, which makes it possible to increase the profitability of the operation for the bank.
As for professionals, including those in the technology sector (a profession that still -and in the medium term- continues to have a lot of potential and moves in a very dynamic market) the concept that banks have is that whoever earns the most, the more job stability they have and less level of indebtedness record will be a better payer. Therefore, despite the risk that certain companies in the sector undertake layoffs in the case of technological ones, we are faced with a profession, not only with almost full employment in Spain, but for which there is even a lack of professionals in the labor market. Their relocation possibilities are very high and that gives entities peace of mind, explains Estefanía González, Kelisto’s personal finance spokesperson.