The Euribor has closed the month of May at 3.862%, just one tenth more than in the month of April. That is why it could be said that the Euribor is reaching a period of stability. However, it is likely that the indicator will end up reaching 4%, since Christine Lagarde, the president of the European Central Bank (ECB), has announced new measures, which could include a new rate hike.
In the event that they rise, the rates would stand at 4%, which could cause the Euribor to end up reaching that figure as well. What is not expected is that it ends up reaching 5%: “Most likely, the Euribor will stagnate around that 4%, that it will not go up much more,” says Simone Colombelli, director of mortgages at iAhorro.
In this context, there have been significant movements in banking entities. In the field of fixed mortgages, for example, there are hardly any entities that offer rates below 3%.
One of the exceptions is BBVA. It offers a fixed TIN of 2.90% and an APR of 3.96%. In this way, a person with a mortgage of 200,000 euros will pay a monthly payment of about 832.46 euros. All this as long as the payroll is domiciled and you take out two insurances (home and loan amortization).
Openbank, for its part, has a fixed mortgage with a TIN of 2.94% and an APR of 3.43%, therefore, the monthly payment would be around 836.75 euros if we consider a mortgage of 200,000. The links that we will have to assume in this case are direct debit of the payroll, contract electricity and gas with Repsol, use the Openbank credit card, acquire two insurances (life and home) and make contributions to Investment Funds or Plans of Pensions marketed by the entity.
Mixed mortgage, big bet for a lower fixed rate
Given the upward trend that fixed mortgages maintain, mixed mortgages continue to monopolize ground, thus offering highly competitive rates.
One of the entities that can be taken into account in this area is ING. Its mixed mortgage offers a TIN of 2.99% during the first 10 years and, after, Euribor +0.69%. In exchange, it will be necessary to direct deposit the payroll, enter more than 600 euros per month or have a minimum balance of 2,000 euros per day and take out two insurances (life and home).
Variable mortgages keep rates low
In this context in which fixed mortgage rates continue to rise, in the field of variable mortgages you can find options with the TIN below 0.60%. Therefore, it could be said that the entities continue to contribute for this product.
An example of this is the EVO variable mortgage. It has a TIN of Euribor +0.48% (2.20% during the first two years) and an APR of 4.17%. The links that will have to be assumed in this case are direct debit of the payroll, unemployment benefit or pension of more than 600 euros and taking out home insurance.
BBVA, for its part, has a variable mortgage with a TIN of Euribor +0.60% (1.49% during the first year) and an APR of 5.07%. All this provided that the payroll is domiciled and two insurances (home and loan amortization) are purchased.