Advantages of getting a mortgage when you're young
We tell you all the advantages and benefits young people have when applying for a mortgage to buy their first home.
Although young people find it very hard to buy their first home because of job instability and low wages, it's also true that they have certain advantages when applying for a mortgage, as banks look favourably on younger clients.
Banks' main reason for preferring younger clients is that they have more years to build loyalty and offer them more financial and insurance products.
The second reason is the shift in banks' business model. The rise of online banks and fierce competition are leading traditional banks to close branches en masse and invest heavily in online banking.
This cuts their costs and lets them offer more attractive products. And this is where young people have the edge, as they prefer online banking or managing their account through an app to going into a branch.
A longer mortgage term
One advantage is having longer to repay the mortgage, which means a much lower repayment. The maximum age for a mortgage is usually 75, so if you're under 35 you can get a 40-year term.
A longer term means a lower repayment and a larger loan, which is a big advantage.
A better interest rate
Most banks have a mortgage for young people with a lower interest rate than standard ones. Obviously it depends on the client's profile and many other factors, but mortgages for under-35s buying their first home usually have a lower rate.
Fewer tie-ins
Another thing to consider is bank tie-ins. Young people are usually only asked to pay in their salary or self-employed income and take out life and home insurance. This considerably reduces the costs of a mortgage.
Even so, if you're young and need a mortgage, it's important to study all the banks' offers carefully and choose the option that suits you best, as a mortgage is a very long-term commitment.
To find out more about the advantages and benefits of a mortgage for young people, visit our page on Mortgage Advice o Calculate your mortgage page on our website or contact us on 695033558 or by email at Cruzhumilladero@valoracasa.es
Blog written by:
Contact
