If last month we had not yet seen the Euribor’s lurch reflected in the banks’ mortgage offer, it is official, we can say that that moment has come.
There are probably still better deals to be seen throughout 2021, especially if the benchmark for variable mortgages continues its downward path. Beyond the forecasts, we have begun to witness the first discounts of this year in bank rates for mortgages and, surprise, it has been in the fixed range.
Banco Santander reduces its offer for a fixed mortgage by around 0.84% by placing its BELIEVE in 1.15% and TAE 1.81%. The requirements to have these conditions are: direct debit of two payrolls, direct debit and pay at least three bills through an account at Santander bank, use credit or debit cards from the entity, home insurance and life insurance.
If we do not meet any of these requirements, the TIN offered is 2.15% and the APR is 2.24%. “The records that the Euribor is setting affect the mortgage offers of the banks. In the case of fixed mortgages, these changes are clearer since users are betting more on this type of loan to ensure fixed and currently lower installments for as long as possible. The uncertainty and the fact that the Euribor at some point will have to rise has caused the popularity of fixed lines to increase “, says the CEO of iAhorro, Marcel Beyer.
On the other hand, Ibercaja and BBVA, although they maintain their offers unchanged compared to last month, are still two of those that present interesting options at a fixed rate.
In the case of Ibercaja, its fixed mortgage has a TIN of 1.70% and an APR of 1.91% at 20 years with the requirement of direct debiting a salary of 2,500 euros per month and take out damage insurance for the mortgaged property.
BBVA, which maintains a TIN of 1.45% and an APR of 2.32%, in return asks for direct debit payroll, take out home insurance and loan repayment.
Opposite effect on variable mortgages
Despite the variable mortgages should particularly notice the falls accumulated by the Euribor after its sixth consecutive historical low (-0.504%), we have seen that, in the case of some entities, such as Banco Santander, they have chosen to raise both the nominal interest rate and the APR of your variable offer. Specifically, the TIN goes from 1.59% / 1.79% last month to 2.09% / 1.09%. While the APR rises from 1.80% to 2.30% for your variable offer, in the case of not obtaining any bonus.
If we are interested in a variable mortgage, another interesting option is that of BBVA. It offers a TIN of Euribor + 0.99% from the second year and an APR of 1.42% for a mortgage of up to 30 years and 80% financing when meeting your requirements to obtain the discounted interest.
Variable or fixed mortgage?
The current panorama does not leave an easy scenario for the undecided. Most experts recommend taking advantage of low rates to ensure a low installment on your entire mortgage loan, but there are those who also see the variable rate as a good option to save interest in a few years. So, What is good for me?
For Simone Colombelli, Mortgage Director of iAhorro, “we are facing a great opportunity to contract a fixed mortgage and be calm throughout the life of the loan. Although on the other hand, variable mortgages they would be an interesting product for a profile that does not have much aversion to risk and that wants to repay its loan in a period of 10 or 15 years at most “.
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