These mortgages are especially designed to give better conditions to young first-time buyers, since they receive financial support from government agencies under agreements with regional or local government.
The characteristics of this type of mortgages are as follows:
- They have a period of fixed interest from the outset (usually between three months and three years) and, subsequently, an interest rate tied to the EURIBOR plus a spread which is lower than for other types of mortgage.
- They habitually include a mortgage payment holiday.
- Repaymentterms are usually longer and even reach 30 or 40 years.
- In exchange for the subsidies, banks usually ask the first-time buyers to take out supplementary products, such as insurance, credit cards or pension plans.
FREQUENTLY ASKED QUESTIONS
Rounding a mortgage interest rateRead answerabout
Rounding a mortgage interest rate
Can my bank service other debts with the money deposited to pay my mortgage instalment?Read answerabout
Can my bank service other debts with the money deposited to pay my mortgage instalment?