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Is it still possible to negotiate a 90 or 100% mortgage with the rate hike?

It will be more difficult to get a mortgage hereafter. Behind European Central Bank rate hike, which went from 0.5% to 1.25% at the beginning of September, the banks will make all their loans more expensive; Also mortgages. And how the installments of these products will be more expensivethe entities will be stricter when approving the requests, because they will want to protect themselves against possible non-payments.

Here’s one bad news for those with little money being saved. Generally, banks finance a maximum of 80% of the purchase, so the client must pay the remaining 20% ​​of their savings plus an additional 10% to cover the buying and selling costs. Before the rate hike, entities used to skip that limit if the future was mortgaged by their good economic situationbut from now on they will think twice before approving requests of this nature.

Then,get a mortgage of up to 90% or 100% is it mission impossible? Not at all. According to financial comparator, banks are still willing to grant these products, although a large majority do not announce it publicly. Of course, their offers are only aimed at people who have proven solvency, especially if they belong to special groups such as civil servants and young people.

For people with a good profile only

The reason bank limit the size of their mortgages to 80% of the purchase or valuation value (usually the lowest) which is simple: exceeding that percentage triggers the risk of non-payment and the risk of the debt not being paid if the house is seized. Therefore, one of the keys to get financing up to 90% or 100% that is to give security to the entity.

This security can only be provided in one way: by crediting solvency. Your chances of getting a mortgage will be over 80% higher if you have a Unlimited contract with a minimum age of two years (especially if you are a civil servant), charge a high salary which allows you to pay the installments without problems and have no other outstanding debts. These options increase even more if another asset can be mortgaged or guarantees are provided, although there is a risk of losing one’s own assets or those of third parties in case of non-payment.

Everything is easier with a broker

If you meet the above mentioned requirements the chances of you getting financing increases by more than 80%, but you will need to find a bank willing to grant the loan. At this point, the applicant may face a new difficulty: because entities do not usually advertise 90% or 100% on mortgages, the client will have to get in touch with a lot of finance to find one that offers them, is a huge investment of time and effort.

But, these processes can be streamlined If the client hires the services of a mortgage broker or intermediary. According to, thanks to their great experience in the financial market, these professionals know which banks to contact to get a mortgage of more than 80%. In addition, they will take care negotiate with several entities at the same time to get higher funding than usual, 95% or up to 100%.

Special conditions for young people

Young people with good jobs who have not yet had time to save the 30% entry deserve a separate chapter. For this group, there two banks that openly offer mortgages with up to 95% financing: Banco Santander and Ibercaja. The Cantabrian bank requires, yes, the client to be under 36 years of age and to provide a personal guarantee (such as a parental guarantee), while the Aragonese bank requires the applicant to be under 35 years of age and to request a minimum of 100,000. euro, to be repaid within a maximum of 25 years.

Precisely, Banco Santander and Ibercajabeside imagine (online brand of CaixaBank), recently signed a agreement with the Community of Madrid for granting mortgages of up to 95% to young people in that region who want to buy a house or apartment. This is the My First Home plan launched by this independent, which will ensure the part that exceeds the normal financing of 80%. In HelpMyCash website You can look at the requirements to benefit from this measure and what similar programs exist in the other autonomous communities.

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