Novo Banco obtained its first guarantee increase for housing credit for young people, after having requested one of the lowest initial quotas among the largest institutions in the banking system. This situation drew criticism from consumer protection associations, which considered the bank's position inadequate.
Banco Montepio was one of the institutions that decided to double its available guarantee envelope for this purpose. With this increase, an additional 670 million euros in credit for young housing becomes available.
The homeownership guarantee scheme for young people was created by the government to help younger generations access the real estate market, especially in a context of high prices and difficulties obtaining bank credit. The guarantees function as protection for banks, allowing them to grant credit on more favorable terms for young buyers.
Authorities and consumer organizations have been closely monitoring how banking institutions are adhering to this scheme, hoping that more banks will increase their guarantee envelopes to meet young people's demand for homeownership.
