The Junta de Andalucía is investing 20 million in cash to guarantee mortgages signed by people over the age of 35. In this way, the bank, prior agreement with the Board, will finish up to 95% of the amount at home, instead of the usual 80%. The measure, according to the estimates of the regional administration, can benefit a thousand young people in the first year of its implementation and it is estimated that it will move 100 million of money in housing buying and selling activities to young people.
This program, called the Juanma Moreno Youth Housing Guarantee Effect, was inspired last year already in Spain by the Government of Isabel Díaz Ayuso, in the Community of Madrid. It was launched in the UK in 2013, under the name Helper to Buy, although it was unsuccessful in inflating prices and increasing the profit margins of the developers.
Five months after the launch of Madrid, by the way, only 10% of the operational processes have gone ahead. In Andalusia, the project is part of the so-called social and economic agreement for the promotion of Baetica, which was signed on Monday by the government of Andalusia, the owners and the CCOO and UGT unions.
One of the points of the social consultation is entitled Guarantee of new mortgage loans for housing finances acquired by individuals up to 35 years old. This age cannot be exceeded at the time of requesting the guarantee, which must go to the first residence, new or used, and which is intended for habitual residence. After the implementation of the measure, the document advises, its scope and effectiveness will be examined “and reviewed to expand its scope of coverage”.
The board also announces that it will dedicate more than 2 million to the Madrid fund, which it already sold last January, from 18 to 20 million guarantees for them. Last February, the Minister of Development, Territorial Coordination and Housing, Marifrán Carazo, stated that this project “will allow many young people to reach the threshold of financing necessary to fulfill their dream of buying a house” in a “complex” mission.
“The opening of the mine door for the plane,” he said then, “is in the main barriers of access to the house.” Banks have limited the granting of mortgages up to 80% of the price of the house, so that “these families do not have a sufficient mattress or the necessary saving capacity to pay the expenses that the mortgage does not cover”.
How to benefit from the ‘Youth Housing Guarantee’?
In the committee of Promotion, Articulation of the Territory and Housing of the Andalusian Parliament, last February Carazo announced that the draft of the Decretals was processed to approve the bases that regulate these mortgage guarantees. In addition, an invitation is to be opened so that financial institutions can submit their applications to join through collaboration agreements.
The measure will be applied to houses with a price of up to 295,000 coins, although this measure is increased by 20% for houses with an A or B energy classification. “The councilor also explained that the beneficiaries of the program cannot have another house to own and must be registered in the Andalusian municipality. Likewise, the property in question can only use habitual and permanent residence for at least two years.
“Not only do we facilitate access to housing for young people and thereby satisfy the exercise of the fundamental constitutional right, but we also promote economic activity and promote employment in Andalusia,” said the councilor, who added that the project will also continue. in “amounts to the public coffers of revenue and money that tax the activity, the income is estimated at 27% of the value of the housing”.
The program ensures that young people up to 35 years of age who want to benefit will have to pay for a mortgage with up to 95% of the financing in banks adhering to the program and there will be a financial institution that prevents them if they are. fear and, if the name, ask for a mortgage to the Board. Applications will be paid by the Ministry of Development, Coordination of the Territory and housing in a non-competitive regime within a month. A loan guarantee amount that exceeds 80% of the house price and will reach up to 95%.