Mortgages according to client or type of asset
In the previous article, we saw how a mortgage credit can be contracted with some characteristics or others depending on our criteria.
We will now look at the range of mortgages on offer according to the client or type of asset to be mortgaged. Depending on our situation, age or type of property, we can access specific types of mortgage.
Mortgages for specific audiences
Depending on our age, profession or even country of residence, we can find specific mortgages on the banking market with more favourable conditions than those usually marketed with a standard offer:
Mortgages for young people:
Many entities, in order to attract a young client, have specific mortgage offers.
These mortgages are usually offered with a young public in mind, 30 or 35 years old, and with more advantageous mortgage conditions than their general offer.
Mortgages for non-residents:
This type of mortgage affects customers who, because they are not resident in the country, find that the conditions for taking out a mortgage loan have become stricter.
As a general rule, banks have stricter criteria for granting these loans and require a contribution to cover their costs.
This varies depending on the institution, but the money lent is usually no more than 50% of the purchase price of the property.
These are normally mortgages on second homes.
Some large companies or even the public administration usually have agreements with banks so that employees or civil servants can obtain special conditions on their products.
Within this set of advantages, there are also mortgage loans with very advantageous conditions.
Mortgages by type of property
We have seen that according to our age, profession or characteristics, we can find more favourable mortgages.
You have to take into account the type of asset to be mortgaged, its characteristics also influence the offer:
Property owned by the bank:
Banks acquire properties by adjudication at auctions, as a dation in payment or by signing a reverse mortgage.
Buying one of these homes can mean better mortgage conditions, but it will always depend on the bank.
These are the so-called official protection housing. Perhaps their great advantage is that their price is governed by a stipulated legal value, which is normally lower than the market price.
This condition usually makes it easier to take out mortgages on this type of property.
Urban or rustic properties:
Although there is no specific type of mortgage for rustic land, as a general rule, the amount to be financed will always be lower as a percentage than for homes located on urban land.
Mortgage loan for land:
This type of mortgage is applied for to purchase land for development and to build on it.
Usual home or second home:
The majority of banks focus their most attractive mortgage offer on mortgages for the purchase of a habitual residence, giving the possibility of obtaining up to 100% of the appraisal price.
In the case of second residences, this percentage is usually lower and we may end up guaranteeing the credit with the first residence or even mortgaging it again.
There is a great variety of financing for the acquisition of a home and other purposes, which we have to know in order to choose the one that best suits our needs and personal and economic characteristics.
We have seen the different mortgages according to the client or type of asset, their characteristics and the most common conditions imposed by the banks. If you have any doubts, at Asmcasas, your real estate agency in Valencia, we will advise you to facilitate the purchase of your new home.