Major political parties attending the meeting The next general elections are on 23 July. youseek to promote housing acquisition by young Spaniards in their selection programmes, and mitigate the effects of rising prices interest rates Citizens who are already making a payment mortgage.
In this way, they analyzed in detail the selection programs of PSOE, PP, VOX and Sumar from comparator and mortgage consultant iAhorro. most notable, A priorileading party Santiago Abascal does not include anything related to mortgages in the selection programTherefore, they only examine the measures of the other three main political formations.
“Access living place It has become a global problem. Antonio Gallardo, financial expert of iAhorro, lists the reasons for this problem as follows: “The increase in prices, especially rent; the supply gap and finally the increase in interest rates”.
Mortgage guarantee for teenagers
Someone star measures announced by PSOE when it comes PP It is a guarantee for young people up to the age of 35. have easier access to host. On the one hand, Pedro Sánchez weeks ago approved a 2,500m-euro guarantee line through the Official Credit Institute (ICO) aimed at guaranteeing youth access to 100% mortgage. In other words, the goal is to guarantee the buyer 20% of the savings to contribute (normally banks finance 80% of the purchase price of the house), so they only have to pay the operating costs (the other 10). %). Although this measure has already been approved, it needs to continue to be developed and implemented together with the ICO.
in case of PP, Alberto Núñez Feijoo He also announced weeks ago that his party would approve a guarantee for youth up to 35 years old to guarantee mortgage loans up to the age of 95 if he reaches the head of the Government. percentage of the total price of the house.
On these two proposals, iAhorro’s financial expert Antonio Gallardo assures that there are “pros and cons.” On the one hand, both warranty lines “let us overcome one of the main obstacles what young people find is very important to have their own savings and be able to pay off what the mortgage doesn’t finance. It will also allow them to access the house ahead of schedule.” However, the biggest disadvantage we found is that “requesters and recipients will certainly pay a higher fee if they are provided with 100% or 95% financing than they would if they were eligible for 80% financing, especially at a time of high interest rates”, Gallardo describes it.
And the higher the funded amount, the higher the monthly mortgage payment will be, which means ” customer debt ratio fires, and the bank does not give the mortgage, despite the guarantees, ”explains the iAhorro expert. Of course, there is a difference between the two offers: PP’s “adds a larger purchasing effort for the buyer because the maximum amount to be financed is 95%”, but this 5% difference will need to be converted into savings” allowing the installments to be slightly lower. Thus, “the indebtedness risk marked by financial institutions will also decrease somewhat”.
1,000 Euro bonds against the rise in mortgages
One of the most commented offers To add there is an “emergency” bonus of 1,000 euros in the election program Households with variable rate mortgages of up to 250,000 euros per household and with a purchase price of up to 300,000 euros in the last ten years can benefit from it. They say the goal of the left-wing group, led by Yolanda Díaz, is to “help cover some of the mortgage increase” due to the rise of Euribor.
Antonio Gallardo, financial expert at iAhorro, compares this aid with another People’s Party proposed: 750 euros to reduce the mortgage burden of middle- and low-income households affected by the increase in Euribor. According to Feijóo, this will be achieved through the creation of a “solidarity” fund between banks and the Government, whose contributions amount to $1.5 billion. 2,000 million euros.
In this way, the iAhorro financial expert believes that both measures “can be helpful, but that this assistance is only on time and not focused on solving a fundamental problem.” That 1,000 or 750 euros “could be complementary to other measures such as the Code of Good Practice, but it doesn’t seem very useful, especially when the impact of the increase in Euribor is not immediate.”
In additionPP offers to issue another bond, also 1,000 euros, but to facilitate the liberation of youth. In this case, the purpose is to “help pay for the objective costs associated with renting or buying a home”. These expenses may include a deposit in case of rent or payment of tax in case of sale. However, despite the fact that “direct assistance can be positive,” said Antonio Gallardo, this 1,000 euros offered by the PP does not seem like a very high amount to solve the huge housing problem we have in Spain. And much less if we talk about facing the ‘objective expenses’ of selling, which are higher than in the case of leasing”.
More flexibility for mortgage change
The PSOE will ease the burden on mortgage holders who have seen how their installments have increased, especially due to the rise Euribor has experienced in recent months.improvements applicable to all mortgage loansIt aims to facilitate early amortization of loans, flat rate conversion of mortgages, restructuring of mortgage loans or requesting date on payment,” they explain from the party in the election programme.
In this context, the iAhorro financial expert clarifies:e “changing the mortgage from variable to fixed is still one of the functions of the Code of Good Practice” and that this additional measure in the Socialist Party’s program “stands for what portability should be: a change in mortgage costs nothing”.
That’s exactly what they want from Sumar: make mortgage portability mandatory. The left-wing coalition proposes to enforce the portability of variable-rate mortgages at a flat rate through renewal, cancellation, or succession, by forcing credit institutions to publish their mortgage loan offerings on CNMC, following “phone portability,” along with associated profiles, so that each client has their own characteristics and may decide to jump into the one that best suits their possibilities”, explain from Yolanda Díaz’s party.
Gallardo assures This measure of the formation of the left is “interesting.because it makes it easier for a product with such a long maturity (up to 40 years of mortgage) to adapt to market changes”. The iAhorro expert also notes that “this is positive for families because without many extraordinary measures, they can reduce the impact of the mortgage increase on their savings now and in the future.”
Other measures: extend the mortgage for up to seven years or create a public bank
Another of the stellar measures announced by the PSOE ahead of the election campaign is to raise the threshold for access to the measures contained in the Good Banking Practices Act to 37,800 euros. Moreover, It also increases the payback period to seven years. (there are now three) and offers the possibility to freeze the mortgage payment for one year. On top of that, Antonio Gallardo states that “everything that is increased is positive,” and wants it to be implemented in the case of these individuals, despite the fact that “the next revision of their quota does not mean an excessively sudden increase in cost, which has already seen a significant increase and continues to be an aggravating factor for its economy.” does,” he said.
Sumar also proposes the establishment of a public bank. “To counter the banking oligopoly” and explain from the formation of Yolanda Díaz, thanks to which “the cost of mortgages can be reduced”. However, Antonio Gallardo believes that even though “even the banks themselves want to be effective”, they will indeed “create” a bad bank “with room for private banking to the issuing clientele”. . Therefore, the comparator and mortgage consultant iAhorro concludes that this measure “would not be very profitable, but would also mean an anomaly in the market”: it would have a large cost and would not have great advantages a priori.