MADRID, 22 (PRESS EUROPE)
Tecnotramit calculates that the costs of the negotiation with the bank to change a mortgage from a variable rate to a fixed rate fluctuate between 500 and 1,000 euros, as indicated in a press release sent this Tuesday, where it explains that the rate hike is causing more and more variable mortgages to consider switching to a fixed rate.
The company explains that so far this year the Euribor has risen by three percentage points, from -0.49% to 2.6%. This is a “much higher” growth rate than that also recorded during the real estate bubble, in which the index took three years to follow the same course, going from 2.17% in September 2005 to 5.5% in October 2008.
The study thus explains that mortgages have become more expensive in recent months at a much higher rate than then, but that, however, current figures are still far from all-time highs.
Currently, an average variable mortgage of €150,000 over 25 years, and which is now under review, will cost €228 more per month, for a total of €2,735 more per year. That’s why some consumers are already negotiating with their bank to switch to a fixed interest rate, according to Tecnotramit.
Given the possible variation in the interest rate, Tecnotramit points out that, currently, there are few mortgage offers with a fixed rate of less than 3%. However, he indicates that with this change the owner could obtain stability in the monthly cost of his mortgage, “because everything suggests that this upward trend will continue in the coming months”.
For this reason, the study advises not to wait and, in case of finding a competitive mortgage offer, to “sign as soon as possible”.
“You can always negotiate the terms of a mortgage during the term of the mortgage agreement. Of course, the circumstances of the mortgage lender and their financial standing must be taken into consideration. In any case, in the final analysis, the transition from floating rate to fixed rate will depend on the will of the bank”, states the managing director of Tecnotramit, Vicenç Hernández Reche.
In the event that the mortgage was signed a few years ago, the transition from variable to fixed can be of much more interest, given that most of the interest is paid at that time. “Newer mortgages have a much more noticeable effect from rate hikes, while those with fewer at maturity will notice less of an impact,” the company says.
