Subsidised mortgages

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.
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