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The fixed rate of mixed mortgages capitulates before the rise of the Euribor

Date: March 21, 2023 Time: 16:23:03

Just a month ago, experts in the financial sector encouraged future mortgage holders to assess the mixed-rate mortgage as an option, since it was the most competitive offer. However, the forecast of the comparators has already arrived and the initial fixed rate of the offers has been affected by the rise in the Euribor, which has already exceeded 3.8% in the daily rate.

Specifically, the fixed interest on these mortgages has reached 3.2%, thus reducing the differences with fixed mortgages, which may be more attractive due to their stability and independence from the rise in rates. And it is that in March, the banks have bet on increases, such as the Triodos Bank mortgage loan, which shoots up to 4.20%. The exception would be the BBVA mixed mortgage.

Thus, the rise in rates by the European Central Bank (ECB), which threatens to raise the Euribor in the coming weeks to even 4%, has infected mixed mortgages. The best offers have become more expensive in their fixed section, except for Cajasiete. In addition, the entity has cut the differential of its variable tranche from 0.80% to 0.70% at 25 years, according to data from the Kelisto financial comparator. This has made the product the most attractive, since the fixed interest, applicable during the first 5 years, stands at 1.9%.

For its part, EVO Banco’s ‘Mixed Smart Mortgage’ offers variable interest of 0.75% over 25 years, however, its 5-year fixed tranche has become more expensive from 1.85% to 2 ,fifteen%. The entity proposes another option for those who want to hold on to the fixed term for a longer period of time: 15 years at a fixed rate, but the interest rises from 2.15% to 2.45%, while the variable interest copies the previous one and it remains at 0.75%, although the period in which it depends on the fluctuation of the Euribor is reduced to 15 years.

The same dynamic has been followed by Ibercaja’s mixed product, whose 10-year fixed rate has gone from 2.45% to 2.55%, while variable interest has exceeded 1%, standing at 1.1 % at 15 years. On the other hand, ING has raised the fixed interest with a term of 10 years from 3.15% to 3.20% and, for its part, the variable has placed it at 0.79% at 30 years. Finally, Banco Santander has chosen to increase the spread to 0.90% at 28 years and set the fixed rate at 3.00% for two years.

Despite the fact that banks continue the path already taken with fixed-rate mortgages, mixed mortgages continue to compete in the mortgage credit market, which, as a result of the rise in rates, is increasingly moving away from its products with the rise in interest. from the pockets of those interested in buying a home.

From Kelisto urges to choose the best mortgage model based on the profile of the mortgagee. “If I am conservative, I can still find fixed mortgages below 3%, they are few, but there are. If I really want security, it’s worth the extra cost. On the other hand, if I am more risky and I think that the Euribor can go down in the future, I could opt for the variable. You always have to remember that, over time, we can change the type ”, they assure from the comparator for La Información.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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