Ung (Young Adults) Billion – mortgage even if you lack equity

The 'Ung (Young Adults) billion' is not a separate product, but rather an expression of the fact that one can obtain a mortgage even if one does not fully meet the main equity requirement. Loan applications are made in the usual way, for example through our digital solutions, but one can also arrange a meeting with one of our advisers.

The 'Ung (Young Adults) billion' is an expression of the fact that we may be able to deviate from the main equity requirement for young customers who are considering buying their first home, and who do not have the opportunity to obtain additional security, for example by parents providing security in their own home.

Several factors are considered in connection with the loan application and a holistic assessment is made. There are also limitations on how many exceptions the bank can make in relation to the main requirements of the lending regulations.

The main rule is 10% of the purchase price in addition to costs.

The bank may deviate from the rule, but you must be able to cover the costs of purchasing a home yourself. If you have managed to save beyond this, it will count positively when a loan application is assessed.

Central to the bank's assessment are factors related to debt-servicing capacity and willingness to pay. To assess debt-servicing capacity, the bank looks at income in relation to total debt. Total debt includes, for example, student loans and credit card limits. In the calculation, we will take into account that you have the financial capacity to service your loans even if interest rates increase. The minimum requirement from the authorities is that you must be able to withstand seven per cent interest.

Permanent employment and income are a significant advantage, but the bank may also consider granting a loan if, for example, you can demonstrate that you are likely to secure employment within a reasonable timeframe.

When assessing willingness to pay, factors such as savings, spending, credit cards and whether you pay your bills on time are considered. If you save and also have a normal spending pattern, this will count positively. Our best advice is that you always pay your bills and that you save regularly.

When you need to buy a home, the bank takes a mortgage on the property as security for the loan. If you do not have sufficient equity, you can, for example, have your parents act as guarantors by allowing the bank to take a mortgage on their property for part of the loan. Another option is for parents to provide a gift or advance inheritance, or to act as co-borrowers.

As a co-borrower on a mortgage, you are jointly and severally liable for the repayment of the entire loan. This means that each borrower is responsible for the full loan amount.

A mortgage guarantor is a person who provides their property as additional security for a loan. This could be parents, for example.

A secured guarantee can be an alternative to cover a shortfall in equity. As a mortgage guarantor, you provide your own property as security for another person's loan. This means that the bank holds you responsible for paying the debt if the person you have guaranteed for does not pay. It is important to think carefully before agreeing to act as guarantor for someone. You can set a limit on how much you are willing or able to guarantee.