Exploring the Best Variable Mortgage Options in a Changing Euribor Environment

In the last two weeks the euribor has maintained an oscillating behavior: after closing August at 4.073% and putting an end to 20 consecutive months of increases, this reference index has fallen slightly in recent days.

However, real estate experts are cautious and prefer to wait for the government’s decisions. BCE and the Federal Reserve before venturing what will happen to this benchmark index for mortgage loans.

Many people who want to embark on the adventure of buying a home are also attentive to its changes because the euribor is key to determining the interests of the variable mortgageswhich are the majority in the real estate market.

Let us remember that this type of mortgage usually has a fixed interest initial that is applied during the first 12 or 24 months.

After that period the type is linked to the Euriborwhere the fees can go up or down depending on their price.

But given the behavior of this index has been a galloping increase for months (despite the slowdown in August), which has had an impact on the pockets of those mortgaged after the annual or semi-annual review, it is possible that the “quota will go to shoot”, they point out in that financial comparator.

Therefore, it is necessary to choose carefully what type of variable mortgage is going to be chosen. Let’s see the proposals of different comparators like the one mentioned above. Help my Cash, OCU y Kelisto.

Evo Banco

According to Help my Cash, the Evo Banco Smart Mortgage takes “the gold medal.” Its interest is 2.20% for the first two years and from the third it is Euribor + 0.48%.

Several comparators agree that Evo Banco’s Smart Mortgage is the best on the market

The loan finances up to 80% of the home and can be paid over up to 30 years. The downside is that to obtain these rates you must take out home insurance and have a minimum income of 600 euros domiciled.

Kutxabank

The Kutxabank Variable MortgageAccording to that comparator, it is “the second best on the market”, with an interest rate of 2.90% during the first year and Euribor + 0.49% for the following years.

It has no opening fee and its maximum term is 30 years. But it also requires taking out home insurance, domiciliating the payroll and subscribing to a pension plan.

Open bank

For the OCU (Organization of Consumers and Users) the mortgage of Evo Banco It is also the best on the market.

But in second place they place the variable mortgage of Open bankSantander’s digital bank.

Its interest during the first year is 1.60%, and then it changes to Euribor + 0.70%. But as in other insurances, it is necessary to domiciliate the payroll or pension, or make income of at least 900 euros; as well as taking out home insurance.

Coinc

It is followed, in his study, by the variable mortgage of Coincwith the initial interest of 1.50% (one of the lowest on the market) and then Euribor + 0.75%.

Among its advantages is that it does not require you to take out insurance or commissions, but it does require you to open an account.

The three mortgages of Unicaja

In the Kelisto comparator the choice of mortgages is repeated. Evo, Kutxabank y Open bank.

But here they also choose other options, such as the alternatives of Unicaja Banco. One is for payrolls from 2,500 euros and another for lower salaries. In the first, the exit interest is 2.4% and then the Euribor + 0.50%; and in the second, the first 12 months a rate of 1.79% is paid and then Euribor + 0.65%.

In both cases it is necessary to domiciliate the payroll, take out home and life insurance, make payments with the cards for 1,200 euros and be the owner of a pension plan, with a minimum contribution of 1.2% of the outstanding capital.

There is a third option from this bank, the mortgage Real Madrid Variable, with a fixed output of 2.40%; and then the Euribor + 0.45% if the products are linked. Here the domiciliary payroll exceeds 3,000 euros, it is also required to have an investment fund and provide a type A home energy efficiency certificate.

ING

The ING Variable Orange Mortgageanother one recommended by Kelistohas a fixed interest of 2.55% for the first 12 months and then a Euribor + 0.59%, with a semiannual review.

Among the linked products are the domiciliation payroll, contracting home and life insurance with the bank. But unlike other loans, there are no commissions here and the maximum term is 40 years.

BBVA

And we close with the BBVA Variable Mortgagewith a fixed interest of 1.49% the first year, and then Euribor + 0.60%.

Here it is also required to domiciliate the payroll of at least 600 euros (or 300 euros for pensioners), take out multi-risk home insurance and another loan repayment insurance.

If you do not contract the products, the interest is Euribor + 1.60%.