The rules of the game have changed in the mortgage market in recent months due to the rise in the Euribor. With a view to 2023, the experts at Grocasa Hipotecas expect it to be the year of mixed mortgages and mortgage changes.
“All the forecasts indicate that interest rates will continue to rise in 2023 and already in March, the Euribor is positioned close to 4%. This rise is affecting the mortgage offers of financial institutions, since some of them are leaving offer fixed mortgages to offer mixed mortgages with very good conditions”, point out the mortgage brokerage company.
A study by Grocasa Hipotecas indicates that the contracting of mixed mortgages last year reached 18.5% of the total operations, which translates into an increase of 10% compared to the same period of the previous year. In this way, it surpassed the variables in signatures (9.09%). Mixed mortgages are perceived as a financial product that can solve the increase in the Euribor. The company’s experts estimate that mixed mortgages They could double their market share by 2023although it will depend on the acceptance it has among consumers.
Benito Cerezo, Director of Training at Grocasa Hipotecas points out that this year, “the profile of the homebuyer will follow the trend at the end of 2022. Banks have tightened the requirements for granting mortgages and Those profiles with greater economic solvency and good job stability will be able to access better financing conditions. Regarding the type of mortgages, fixed mortgages will be restricted to the most creditworthy profiles, while the contracting of variable mortgages will decrease in favor of mixed mortgages as a solution to the rise in the Euribor”.
For several decades the fixed and the variable have competed for the throne. The mixed mortgage is a hybrid model between the two, which is offering a way out for those who opted for the variable mortgage and who now want to switch to more stable financing.
Another of the conclusions reflected in the report is the significant increase in the change of mortgages in the last months of the yearreaching up to 12.1% of the total services provided by Grocasa Hipotecas in December 2022. In total, in the past year there has been an increase of 56% in mortgage changes compared to 2021.
“These changes are derived from the concern of customers who have variable mortgages and that they will see their installment payment changed with the rise in the Euribor,” adds Cerezo.
