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The number of mortgages on houses registered in the property registers it was of 36,249 in the month of October from 2021: a 27.9% more than in the same period of 2020, according to the National Institute of Statistics (INE). Sand trata of eighth consecutive month of growth. Regarding the average amount, it stands at 138.11 euros. Therefore, 1.9% more.
And what was the average interest rate in the case of homes? 2.55%. Term? 25 years. Another relevant data is that 67.2% of home mortgages were signed at a fixed rate. The remaining 32.8% did so at a variable rate.
Sten years old six months in a row in the that the figure for fixed-rate mortgages exceeds 60%. A decade ago, they only represented 4% of the total. In the absence of the months of November and December from the INE, the data for the last quarter of 2021 from the Trioteca digital platform shows that the trend will continue: Fixed mortgage applications represented 94% of the platform’s total.
The fixed mortgage, according to experts, will continue to reign in 2022. Among its attractions, which its average interest rate is around 2.81%. Very far from the 6% reached in the middle of the real estate bubble. “The fixed rate could not compete before with the variable with a negative Euribor. This has meant that entities had to lower rates a lot, to attract more customers by choosing a fixed rate and ensuring a profit, even if it was not very high, “says Carles Solé, manager of mortgage formalization at Tecnotramit. In addition, they have managed to retain customers in the medium and long term.
The main advantage of taking out a fixed-rate mortgage is that the user will pay the same installment throughout the life of the mortgage. Summed up in two words: stability and tranquility. You no longer have to be aware of possible variations in the Euribor.
The downside is that they used to be more expensive. They used to, because the difference with the variables has been shortened until they are almost on par. Another aspect that differentiates them is the one referred to the early repayment commissions.
According to the new Mortgage Law of 2019, in the case of fixed mortgages, the maximum is 2% in the first 10 years and 1.5% in the remaining years. In the case of variable, the maximum commission that is applied is 0.15% in the first five years or 0.25% in the first three years of the mortgage.
Green is in fashion
If fixed-rate mortgages will continue to predominate in 2022, there will be anotheras that will grow in double digits. These are known as green mortgages, that is, those linked to rewarding the energy efficiency of a home. Or what incentivan the improvement of those other dwellings that, due to their age, presentan less favorable energy ratings.
According to the Negotiating Agency, fintech dedicated to mortgage intermediation registered with the Bank of Spain, will grow in double digits due to the greater supply of banks and the best contracting conditions. Without forgetting the push that will come from the European funds that dedicate a part to the rehabilitation of buildings.
It should be remembered that its possible field of action is immense. More than half of the existing buildings in Spain were built before 1980. About 21% are already half a century old. Therefore, six out of ten buildings They were put on their feet before the first regulation was enacted that required minimum criteria for energy efficiency in construction.
“Banks that sell green mortgages apply an average interest rate reduction of 0.1 points, and / or eliminate or significantly reduce the opening commission and the mortgage percentage of the property value (loan to value), above 80% ”, they point out from the Negotiating Agency.
Hence, from the fintech bet that, progressively, new “more imaginative” offers will appear. And this will be the case both for the client looking for a home with high energy efficiency (new), and for those who wish to increase the efficiency of a less energy-efficient home (second-hand).
According to fintechWith a little investment you can improve the energy efficiency of your home one step. Something that would happen if about 1,000 euros are invested in the change of a gas boiler, for example. Four out of every five buildings are energy inefficient today. “Furthermore, the risk profile of applicants for this type of product is lower, which will also contribute to the expansion of the ‘green’ financial product ”, specified from the Negotiating Agency.
PTherefore, a new commercial field in which, in addition to the conditions of the mortgage (term, associated products…), the characteristics of the property that contribute to the improvement of the environment will also be assessed.
“Thus, A home with energy rating A or B would obtain better conditions than C, D, or E. Financing aimed at increasing the energy efficiency of the home by 30% can also benefit from better conditions ”, conclude from Negotiating Agency.
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