Personalized Mortgages: The Future of Real Estate Finance?

Online branches of banking institutions have begun providing personalized mortgages that offer a type of loan for any need and that can facilitate access to their own home for particularly vulnerable groups such as young people or the self-employed.

Even before the health crisis, difficulties in accessing housing had become one of the main problems in Spanish society and one of the greatest challenges that financial institutions and the real estate sector had to face.

Among the various population groups that faced serious obstacles in gaining access to real estate even before the pandemic, the first place was and continues to be occupied by young people, according to the latest general balance of the Spanish Youth Council, since the first half of 2020, only 17.3% of young people aged from 16 to 29 years old will be emancipated.

Unemployment and temporary employment are two barriers young people face when considering buying real estate, but even in the most favorable employment situations, the lack of savings makes them incompatible with the minimum 30% of the selling price of real estate, which is usually a prerequisite for to afford the purchase.

However, young people are not the only population that faces obstacles in obtaining a mortgage loan. Another group historically disadvantaged by the policies of financial institutions are, for example, the self-employed, who have stricter requirements for mortgage approval.