The mortgage showcase It has changed after the summer due to the rise like a rocket of the Euribor, which already exceeds 2% due to the overwhelming increase in interest rates. Since July the ECB has raised them twice, going from 0% to 1.25%, after the historic rise of 75 basis points this Thursday. Thus, financial institutions retouch the price of mortgages almost daily to adjust to the new scenario. The fixed ones are increasingly expensive, in order to direct hiring towards the variables, which are more profitable for banks with the Euribor shot up. On the other hand, banks such as ING, Evo Banco, Openbank and Santander are betting on the intermediate formula of the mixed as an alternative.
None fixed mortgage announced by the entities is less than 2.5% APR, when a few months ago many lowered 2% APR. Several already exceed 3% APR and even some, such as Abanca, exceed 4% APR. Only the most solvent customers have the possibility of accessing better offers. Kutxabank personalizes the conditions based on the profile and CaixaBank is also open to negotiating with those who seek to change their loan from variable to fixed. The unstoppable advance of the Euribor has boosted the demand for fixed mortgages just when most entities no longer want to compete for them. According to the INE, since the beginning of the year more than 70% of new operations are at a fixed rate. This percentage is expected to moderate.
The Euribor rises 2% and is expected to continue to rise, making variable installments more expensive
From the financial comparator HelpMyCash.com they encourage those who want to apply for a fixed mortgage to “do it as soon as possible in the face of the general strategy of making fixed rates more expensive, especially since they can still be signed with an interest below 3% if you have a good profile. The Negotiating Agency believes that the fixed rates will reach 5% APR this year, while the market anticipates that the euribor will continue to rise in the coming months due to the ECB’s monetary policy, which will continue to raise official rates to cause a drop in inflation, which will make variable mortgage payments more expensive. “Hiring a variable now implies taking on a lot of risk due to the uncertainty that prevails in the market,” say the experts at HelpMyCash. In Asufin they maintain that “banks are very cautious when granting the change from variable to fixed mortgage” and predict that the offer of fixed rates will fade away. They also ask to “pay close attention” to linked products.
ING, Evo Banco, Openbank and Santander advocate mixed companies as an alternative
Evo Banco has raised its fixed mortgage to 2.53% APR for 25 years. However, it remains among the cheapest at the moment, as is its adjustable mortgage with a spread of 0.60% and a rate of 0.99% the first year. A payroll of at least 600 euros and some insurance is necessary. Kutxabank offers 0.64% plus the Euribor and an initial 0.79% with a more demanding bond.
Ibercaja’s ‘Mortgages for people with heads’ campaign allows you to obtain a fixed rate from 2.52% APR for direct debiting income of a minimum of 2,500 euros per month. In the variable modality, the spread reaches 0.75% with a starting rate of 0.99%.
At BBVA, the fixed rates are 2.81% APR for 15 years in the case of income of more than 600 euros per month and contracting home insurance and payment protection. In the variable mortgage, the fixed interest at the beginning is 0.89% and the differential is 0.79%. Also 0.79% is marketed by TargoBank and ING, although the first year rates are higher. In the orange bank, the price of the fixed mortgage is one of the highest, 3.64% APR.
The fixed mortgages of Coinc, Openbank, MyInvestor, Sabadell, Santander, CaixaBank and Bankinter all exceed 3% APR. Terms and conditions vary. Coinc does not require any additional products and the only requirement in MyInvestor is monthly income of more than 4,000 euros. In return, most of these entities have attractive variable mortgages. The Openbank spread meeting conditions is 0.70% and can be reduced by an additional 0.10% if between 150,000 and 400,000 euros are financed. 0.75% added to the Euribor give Bankinter, Coinc and Sabadell a term of 30 years. In the first two, the interest during the first twelve months is 1.25%. In Sabadell it rises to 1.55%. For its part, Banco Santander offers 1.87% in the first half and 0.77% plus Euribor afterwards.
Neither Pibank nor Targobank have fixed mortgages, but the variable ones offer differentials of 0.78% and 0.79%, respectively.
The director of mortgages at iAhorro, Simone Collombeli, points out that the differentials of the variables “could continue to drop somewhat more” and assures that they can currently be found at 0.5% for the most solvent pockets.
From the Hipoo platform they comment that “advocating for the fixed rate is already part of the banking past and the new paradigm is marked by variable rate mortgages and the reappearance of mixed mortgages”. The mixed ones are returning to the market in a competitive way, although experts warn that they are only suitable for certain profiles and if the fixed term is at least ten years.
In the proptech Huspy they believe that, given the loss of purchasing power due to inflation, mortgages will tend to become more expensive and banks will demand more conditions to grant them.
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