{"id":52049,"date":"2024-09-19T17:00:00","date_gmt":"2024-09-19T15:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=52049"},"modified":"2024-09-19T16:52:33","modified_gmt":"2024-09-19T14:52:33","slug":"how-do-ico-mortgage-guarantees-work","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/how-do-ico-mortgage-guarantees-work\/","title":{"rendered":"How do the ICO mortgage guarantees work?"},"content":{"rendered":"<div class=\"component text\">\n  <div class=\"container\">\n\n\n    <div class=\"row\">\n      <div class=\"col  col-lg-8  offset-lg-2\">\n        <h3><b>The line of mortgage guarantees signed between the Official Credit Institute (ICO) and the Government to cover 20% of the total value of a mortgage will end on 31 December 2025. What are the requirements and conditions for applying for one?<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">To prevent the lack of savings from being an impediment to access to homeownership for <\/span><b>young people who do not have enough money to pay the 20% down payment<\/b><span style=\"font-weight: 400;\">, the State Government, in collaboration with the Official Credit Institute (ICO), has launched a mortgage guarantee with which up to 100% of the purchase of a home can be financed. This measure is free of charge for the mortgage holder and the bank that grants it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The line of guarantees with the ICO is endowed with 2,500 million euros and is <\/span><b>aimed at people under 35 years of age and families with dependent children<\/b><span style=\"font-weight: 400;\">, to help them buy their first home. The government expects this measure to help more than 50,000 solvent citizens who have not been able to save enough for the down payment on the purchase of a house or flat, given that, as a general rule, financial institutions will only finance approximately 80% of the assessed value of the property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This guarantee may be <\/span><b>up to 25% if the home purchased has an energy rating of D or higher, <\/b><span style=\"font-weight: 400;\">and will be valid for 10 years from the date the transaction is formalised. The deadline for formalising loans under this line of guarantees will end on 31 December 2025, with the possibility established in the agreement of extending the period until 2027. In the case of Catalonia, the price of the property to be purchased may not exceed 300,000 euros.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Additional requirements to be met by applicants<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The guarantees are designed for natural persons of legal age, with legal residence in Spain, accredited continuously and uninterruptedly during the two years before the loan application and with <\/span><b>an income that does not exceed 37,800 euros gross per year <\/b><span style=\"font-weight: 400;\">(4.5 times the IPREM).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If two people buy the home, the income limit is doubled. In addition, with some exceptions, <\/span><b>they may not previously own another home<\/b><span style=\"font-weight: 400;\"> and the guaranteed party&#8217;s maximum assets may not exceed 100,000 euros.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">During the term of the guarantee (up to 10 years), the home <\/span><b>must be the habitual residence of the beneficiary<\/b><span style=\"font-weight: 400;\">, unless there are circumstances that require a change, such as the consummation of a marriage, marital separation, job transfer, obtaining first occupancy or more advantageous occupancy. In these cases, the home may be rented.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To access ICO guarantees, a procedure is stipulated in the Official State Gazette (<\/span><a href=\"https:\/\/www.boe.es\/diario_boe\/txt.php?id=BOE-A-2024-9128\"><span style=\"font-weight: 400;\">BOE<\/span><\/a><span style=\"font-weight: 400;\">), which also details the documents to be submitted.<\/span><\/p>\n<p><b>To discover the best option to protect your savings, go to <\/b><a href=\"https:\/\/serveis.11onze.cat\/en\/preciosos-11onze\"><b>Preciosos 11Onze<\/b><\/a><b>. We will help you buy the ultimate safe-haven asset, physical gold, at the best price.<\/b><\/p>\n\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<div class=\"component cards\">\n  <div class=\"container\">\n    <div class=\"row\">\n      <div class=\"col col-xl-8 offset-xl-2\">\n        <h1>If you liked this article, we recommend:<\/h1>\n        <div class=\"cards__wrapper\">\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/socio-economic-burden-housing-crisis\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2024\/09\/THUMBNAIL_IMAGE_Crisi_Habitatge-768x512.jpg\" class=\"card-img-top\" alt=\"\">\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>The socio-economic burden of the housing crisis<\/strong><\/p>\n              <span class=\"card-time\">3 min read<\/span>\n              <p class=\"card-text small\">The housing crisis in Spain has not only created a situation&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/renting-house\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/06\/THUMBNAIL_LLOGUER_ABUSIU-768x513.jpg\" class=\"card-img-top\" alt=\"\">\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>What to accept and not accept when renting a house<\/strong><\/p>\n              <span class=\"card-time\">3 min read<\/span>\n              <p class=\"card-text small\">In the real estate market, and specifically in the rental&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/mortgage-amortisation-worth-it\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2022\/10\/THUMBNAIL_AMORTITZACIO_HIPOTECA.jpg\" class=\"card-img-top\" alt=\"\">\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Mortgage amortisation: is it worth it?<\/strong><\/p>\n              <span class=\"card-time\">3 min read<\/span>\n              <p class=\"card-text small\">If we have money saved up, and we are paying a mortgage&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n              <\/div>\n              <br>\n              <br>\n              <div class=\"cards__wrapper\">\n\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":71,"featured_media":52039,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"content-type":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-52049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How do the ICO mortgage guarantees work? 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