Given the strong rise in the Euribor, you will find the most competitive mortgage in the financial market, it is becoming more and more an arduous task for future owners looking to save on interest. Especially since the fixed option, a model that banks promoted and that mortgaged futures enthusiastically embraced for stability and independence from interest rate rises not long ago, is now moving away as an option precisely because banks are making it more expensive.
Given this context, experts in the financial sector consider that it is the right time to opt for mixed-rate mortgages. With this model, the security offered by the fixed rate is chosen over a specific term -between five and 15 years, specifically- at a time when the trend of the mortgage index is to continue to rise (the forecasts are that arrive at some point in 2023 to be between 3.75% and 4%).
In addition, this type of mortgage offers a fixed interest rate below its fixed-rate rivals. Thus, if the interest on mortgage loans already comfortably exceeds 3%, that on mixed-rate mortgages is clearly below this level and closer to 2% than 3%. Of course, once the term is over, a differential is applied over the Euribor.
From HelpMyCash they advise contracting this type of mixed mortgage as soon as possible, given the forecast that the rise in credit prices will also reach the initial fixed rates of mixed mortgages. And, for its part, iAhorro recommends opting for this mortgage, taking into account that, in a few years, if the mortgage customer finds a better offer, it can always be subrogated.
When choosing this model, it is essential to be aware that, despite attractive conditions, these products are not without risk. And this is related to the evolution of the Euribor when the initial fixed period ends, which could lead in the long term to a result in which the mixed rate implies more expense than the fixed rate. And, on the other hand, it is necessary to study the different offers from entities based on risk tolerance. From HelpMyCash they recommend a fixed rate applied to ten years or more when the client seeks stability, and one to five years or less if he is able to assume the increases in fees.
In addition, it will always be less risky if the interested party has good savings capacity and can periodically make early repayments to advance debt. In this way, explains the comparator, “you can shorten the term so that the subsequent variable rate is applied for less time or you can reduce your fee so that it rises less as soon as the mortgage interest becomes variable.” Another aspect that the future owner has to consider is to assess, apart from the interest, the number of associated products, choosing whenever possible for the one with the fewest requirements.
The best offers on the market
Among the entities that have attractive offers, Openbank stands out. The digital subsidiary of Banco Santander sells the ‘Open Mixed’ mortgage, a credit that starts from an initial fixed rate of 2.37% for the first 10 years and from Euribor plus 0.55% for the following ones. In addition to having direct debit conditions for income, contracting home and life insurance from the bank, using one of its credit cards, investing in a pension plan or fund and having subscribed to electricity and gas supplies with Repsol.
Another option that experts place as tempting is the Ibercaja product, and its mortgage ‘Hipoteca Vamos a mixed type 10’, with an initial fixed interest of 2.15% and a variable one from Euribor plus 0.80%. As for the link, it requires direct debit of payroll and receipts, use the entity’s credit card, purchase life and home insurance and make regular contributions to one of Ibercaja’s investment funds.
Finally, the ‘Flexible Smart Mortgage’ of EVO Banco stands out. Its initial fixed interest can be from 1.85% for the first five years or from 2.15% for the first 15, while the subsequent variable rate is from Euribor more than 0.75%. This product is interesting because it is the mortgage that allows you to extend the period in which the fixed interest is applied the longest. To obtain these types it is necessary to domicile the income and contract the home and life insurance of the entity.