The Andalusian government is finalising a plan to use public funds to guarantee fifteen per cent of mortgages taken out in the region by those under 35. This will allow banks to grant up to 95 per cent of the price of a home, which will reduce the down payment that in many cases makes it impossible for young people to buy due to a lack of savings.
The regional government has spent months finalising the legal details with a view to approving the measure this year.
The payment will not be a subsidy or grant. The Junta will not pay the fifteen per cent of the mortgage to the bank but will ring-fence an amount of public money so that the banks will grant up to 95 percent of the cost of the home, instead of the 80 per cent loaned now as a maximum.
The measure is aimed at under-35s, although its extension to under-40s is being studied in exceptional cases.
A recent report by the local construction sector had called for a similar measure to help people buy their first home.