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SpanishA mortgage for young people 35 years old and under
Financing up to 95% of the lowest of the securities between sale and appraisal
If you are under 36 years old and you are thinking of buying your first home, at Banco Santander we can offer you a Youth Mortgage, loaning you more money than usual mortgages, which may be up to 95% of the lowest of the two values of the appraisal and the sale price, so that your initial investment will be much smaller.
Calculate your mortgage's monthly repayments and associated costs with our mortgage calculator, and do your own maths.
Don't overthink it. Leave your details and a specialised manager will call you to start the arrangements to buy your new home!
Requirement for the youth mortgage
This mortgage is for you if:
- You are under 36 years.
- You take out a mortgage to buy a primary residence.
- You offer sufficient joint and several personal guarantee (endorsement) from third parties, as well as the mortgage collateral2.
Characteristics
- You can apply for a mortgage loan at fixed or variable interest rate.
- Loan of up to 95% of the lowest of the two values of the appraisal and the sale price.
- You must always contribute at least, through your own funds, the difference between the price of the sale and the amount financed.
- Charge or fee for total or partial early repayment:
- Variable rate: one of the following:
- 0,25% of the principal repaid early when partial or full repayment takes place during the loan's first three years; or
- 0,15% when partial or full repayment takes place during the loan's first five years.
Under no circumstances may the fee exceed the amount of financial loss3 incurred by the bank.
- Fixed rate: fee for early repayment. In the event of full or partial early repayment, the borrower must compensate the bank. This will include:
2% of the principal repaid early when early repayment takes place during the loan's first ten years and,- 1,5% of the principal repaid early when early repayment takes place after ten years..
- Variable rate: one of the following:
The charge will not, in any case, exceed the amount of the financial loss that the bank may incur based on the fixed rate4.
My First Home Agreement with the Community of Madrid
If you are from the Community of Madrid, take advantage of the benefits of the agreement signed with the Government of this Autonomous Community, which will allow you to purchase your first home.
Agreement with the Community of Madrid to finance your home up to 95%5
Aimed at young people under 35 years of age who do not have the prior savings necessary to purchase their first home. The mortgage could be for between 80% and 95% of the property value (the sale price or the appraisal price, whichever is lowest).
Requirements to join the My First Home Programme
You can join the programme if:
- You are under 35 years old.
- You have lived in the Autonomous Community of Madrid for at least 2 years, continuously and uninterruptedly.
- You are purchasing your first home.
In addition, the home you wish to purchase:
- Is in the Autonomous Community of Madrid.
- Will be your primary residence for at least two years from the date of purchase.
- Has a price of up to €390,000, excluding any associated purchasing expenses or taxes.
Learn all the details of the My First Home Programme.
We know buying your first home is not an easy decision. That's why, so you have all the information you need just one click away, you can calculate your monthly mortgage repayment and associated costs using our simulator.
1. Home mortgage loan. Lender: Banco Santander, S.A with registered office at Santander, Paseo de Pereda, 9- 12 (39004) – Cantabria Mercantile Registry, Sheet 286, Folio 64, Companies Book 5, entry 1, Corporate tax ID A-39000013.
Financing subject to Banco Santander's approval.
For homes free of charges and encumbrances. This information does not replace the European Standardised Information Sheet (ESIS), available at www.bancosantander.es and the bank's branches. You can request the European Standardised Information Sheet (ESIS) at your branch. In case of going ahead with the proposal, the rest of the mandatory pre-contractual documentation will be delivered.
In the event of non-compliance with any of the obligations contained in the mortgage loan agreement, you may lose the property. In the event of non-payment and in all cases of mortgage acceleration, the bank may, after sending prior notification to the address you indicated for mortgage foreclosure purposes, pursue personal action against you or move to foreclose the mortgaged property. You will therefore be liable as before the bank for repaying the loan with all your present and future assets as well as the mortgaged property. In accordance with article 105 of the Spanish Mortgage Law and article 1911 of the Civil Code.
If the mortgage loan on the property is arranged in the autonomous region of Andalusia, click here (PDF 148 KB).
2. This guarantee will expire on the date that 5 years have elapsed from the formalization of the deed, leaving the guarantors released as personal guarantors before the Bank and exonerated from all liability for this concept, provided that on that date the loan is up to date with payments of principal and interest installments and there has been no delay in the payment of more than one installment in the last 24 previous months.
3.The financial loss suffered by the bank will be calculated, in proportion to the principal repaid, by negative difference between the principal payable at the time of early repayment and the present market value of the loan. The present market value of the loan will be calculated as the sum of the present value of the instalments payable up to the next interest rate review or up to its due date and the present value of the principal which remains payable at the time of the review if no early repayment occurs. The updated interest rate will be the sum of: (i) the interest rate swap (IRS) rate for terms of 2, 3, 4, 5, 7, 10, 15, 20 or 30 years, published by the Bank of Spain, that is closest to the remaining term from the date of early repayment up to the interest rate review date or up to the mortgage due date and (ii) a spread calculated by subtracting the value of the Interest Rate Swap (IRS) referred to in the previous section from the interest rate of the transaction, using the latest data published by Bank of Spain on the date closest to the date on which the loan was arranged.
4. The financial loss suffered by the bank will be calculated, in proportion to the principal repaid, by negative difference between the principal payable at the time of early repayment and the present market value of the loan.
The present market value of the loan will be calculated as the sum of the present value of the instalments payable up to the mortgage due date. The updated interest rate will be the sum of: (i) The interest rate swap (IRS) rate for terms of 2, 3, 4, 5, 7, 10, 15, 20 or 30 years, published by the Bank of Spain, that is closest to the remaining term from the date of early repayment up to the mortgage due date and (ii) a spread calculated by subtracting the value of the Interest Rate Swap (IRS) referred to in the previous section from the interest rate of the transaction, using the latest data published by Bank of Spain on the date closest to the date on which the loan was arranged.