The Euribor today drops to 3.648% and is heading into the month of April in which all mortgage holders who renew their mortgage payment this month can have good news. March closed with only a decrease for semiannual renewals, but in this fourth month of the year the average will be compared with the data for April 2023 and that 3,756 from a year ago is the hope for all mortgages linked to a variable rate to decrease because April stands at 3.656%. Thus begins a comparison to calculate the new mortgage payments between an upward trend and one that falls or if it rises, it does so very little. Far away are the increases of up to 600 euros per month that many mortgage holders have been enduring for a year.
The 12-month Euribor, which measures the interest at which the large banks in the euro zone lend, in March leaves an increase in an average mortgage of 100,000 euros, for 25 years, of 4 euros in the monthly payment and almost 49 euros in Annual terms. Only semi-annual renewals lower the mortgage payment: up to 25 euros less per month.
When will the Euribor go down?
Simone Colombelli, director of Mortgages at the iAhorro mortgage comparator and advisor, assures that this data is not cause for alarm: “We are in a moment of stability in terms of interest rates, which implies that the Euribor also registers slight falls between a month and another, like those we saw in November and December of last year, which are later offset by new increases like the ones we are seeing now and have seen in February. And until the ECB lowers rates, there will be no decisive movements in the Euribor because the difference between both values is already very high.”
In fact, on March 7, the European Central Bank (ECB) chose to maintain rates at 4.5% and Christine Lagarde, the president of the organization, dropped that it is likely that the drop will occur at the meeting on March 6. as a junior. “It is very likely that the European body will lower the official interest rates by just 0.25 points to leave them at 4.25”, so this drop will not change the outlook much either,” Colombelli emphasizes.
How is the mortgage offer?
Taking this context into account… What strategy are the banks carrying out? Have the interest rates on your fixed or mixed mortgages increased again? Are they bidding again for the variable mortgage? “Last year the offers were stagnant and there was hardly any ‘war’ between the entities to attract clients, but so far in 2024 this position has completely changed: the bank is hungrier and makes very competitive offers, trying to position itself better than its competitors to take as many customers as possible,” says the mortgage director.
The best fixed mortgages of April
In the field of fixed mortgages, Sabadell is one of the entities with the best conditions. It offers a TIN of 2.75% and an APR of 3.87% as long as the payroll or pension is domiciled and three insurance policies are purchased (home, life and payment protection).
Santander’s fixed mortgage follows closely. The user will be able to enjoy a TIN of 2.80% and an APR of 3.39%. However, in this case more requirements will have to be assumed: direct debit of payroll, pension or self-employed payment; use the credit card up to six times; take out four insurance policies (home, life, accidents and disability); have the renting of a security system from Movistar Prosegur Alarmas and have a home with an A+, A or B energy efficiency certificate.
Caixabank is one of the banks that has decided to join the ‘mortgage war’ this April. It markets a fixed rate loan with a TIN of 2.90% and an APR of 4.27%. In exchange, the direct debit of a payroll of more than 600 euros and 3 receipts will be necessary; make purchases with Caixabank cards; take out two insurance policies (life, home) and purchase a Securitas Direct alarm.
The best mixed mortgages of April
Although fixed mortgages are improving their conditions, we must not forget that mixed-type mortgages continue to be an alternative for those people who want a lower fixed TIN for a specific period of time.
Sabadell, for example, has a mixed mortgage with a fixed NIR of 2.25% for the first three years and, afterwards, Euribor +0.85%. All this as long as the payroll is domiciled and two insurance policies (home and life) are purchased.
For its part, Abanca offers a mixed mortgage with a TIN of 2.50% for the first 5 years of the life of the loan. From the sixth year onwards, the TIN becomes Euribor +0.60%. The links that will have to be assumed in this case are direct debit of the payroll, making 24 purchases a year with the entity’s credit card and taking out two insurance policies (life and home).
The best mortgage variables
For those who are considering opting for a variable mortgage, they should take into account the one marketed by EVO. It is made up of a TIN of the Euribor +0.48% (2.20% during the first two years) and an APR of 4.29%. In exchange, you will have to domiciliate your payroll, unemployment benefit or pension of more than 600 euros and take out home insurance.
Openbank is not far behind. Your variable mortgage has a TIN of Euribor +0.60& (1.60% during the first year) and an APR of 4.59%. In order to enjoy these conditions it will be necessary to domiciliate the payroll and purchase two insurance policies (life and home).
