One of the largest problems with Spain’s housing stock is its age and energy inefficiency. The number of green mortgages will grow this year as the Government allocates European funding to refurbish housing.
55% of Spain’s houses were constructed during 1980s and 20% of buildings are over 50 years. 6 out of 10 buildings are prior to Spanish regulations establishing minimum energy efficiency criteria. However, Carles Solé, Tecnotramit’s Mortgage Loan Manager, declares: ‘It is possible to reach the required energy efficiency levels thanks to moderate investment measures.’
Green mortgages will have better tax benefits in 2022 compared to regular mortgages. On the one hand, they are free from tax on documented legal acts. Whereas, on the other one, financial entities treat them singularly by either lowering interest rates to 0.1 or, in some cases, arrangement fees. Moreover, standard financing levels are increasing since the usual 80% is being surpassed.
According to Solé, this special treatment is due to ‘legal support received because of European funds, EU and government regulations, as well as financing already existing projects. This guarantees the bank a low-risk mortgage.’
Green mortgages have changed over time. They had been previously designed for the Spanish market as a finance product exclusively dedicated to new properties with top energy efficiency (type A). Whereas currently, as the expert claims, the goal is ‘to increase energy efficiency by 30% on existing buildings so they can qualify for “green mortgages”.’