ICO guarantees young mortgages | The Government will set a regional limit to the price of housing guaranteed by the ICO

The Council of Ministers has given the green light this Tuesday to the creation of the line of ICO guarantees announced last weekend by the President of the Government, Pedro Sánchez, which will cover up to 20% of the mortgage credit of families with less than charge and young people up to 35 years of age who need help to buy the house they intend to buy. The Minister for Transport, Mobility and the Urban Agenda, Raquel Sánchez, has announced that the Executive will set a maximum limit of the sale or appraisal price of the properties that can benefit from this initiative and it has also specified that said limit will not be the same for all the autonomous communities, but rather Will be defined depending on the location and the situation of the real estate market in each specific territory.

Within the framework of this programme, the ICO may grant guarantees of up to 25% of the principal of the loan if the home to be purchased has a minimum energy rating of ‘D’ or higher. These guarantees will be free of charge for the applicant and may be requested, in principle, until December 31, 2025, although the Government does not rule out extending them for another two more years. The guaranteed mortgage may not exceed 100% of the lower value between the appraisal value and the purchase price of the affected home.

Among the conditions that have been established to be able to access them is that applicants must have income less than 4.5 times the Iprem (37,800 gross euros per year) and, double, if it is a couple. If the claimants have dependent minors, the income limit will be increased by 0.3 times the IPREM (2,520 euros gross per year) for each child and an additional 70% in the case of single-parent families. With this state support, which will be requested through the credit institutions themselves, the Executive has set itself the goal of facilitating the acquisition of approximately 50,000 homes and supporting groups that, being solvent, do not have prior savings.

The Executive will also finance the promotion of some 43,000 public affordable rental homes with 4,000 million euros from European Next Generation funds. The floors must be used for that purpose for at least 50 years. At the same time, the Council of Ministers has given the go-ahead to the plan to promote another 20,000 homes on Ministry of Defense land through the Public Land Business Entity, Sepes. Sánchez has explained that the estimated value of this operation is 620 million euros and has stressed that with it it is intended to “mobilize all the available land of Defense to form the public park” of housing in Spain.

Fifty performances in fourteen autonomies

This last project contemplates, according to Sánchez, a total of 50 performances in fourteen autonomous communities and in the cities of Ceuta and Melilla, on more than 8 million square meters of land. As explained by Sánchez herself, once the agreement is signed for the Ministry of Finance and Public Function to provide the necessary funds for Transport to acquire the land from Invied, a company that depends on Defense, the agreements will materialize for each of the performances. Some will be faster because the soils are ready, while in other cases it will be necessary to plan or urbanize them.

This measure gives continuity to decisions that had already been adopted as a result of Operation Camp in Madrid (12,000 homes, of which 60% will be public, which will also be built on land that belonged to Defense), with the headquarters of They are Busquets, in Palma de Mallorca, or with some other performances that are currently underway in Seville, Valencia or Valladolid. “We are responding to an emergency that does not have a single solution,” Sánchez pointed out, while also insisting that the Government is willing to activate all measures of the type that are necessary so that all groups can benefit in terms of housing.

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