The rise in interest rates, initiated by central banks to curb inflation, has skyrocketed the cost of mortgages. It affects those already mortgaged at a variable rate, such as those seeking to sign a new mortgage loan. In addition, both fixed-rate and variable-rate mortgages have become more expensive.
The interest rate is one of the key points to take into account when signing a mortgage. In the case of fixed-rate mortgages, the agreed interest is constant, that is, if you set a percentage that is maintained until the mortgage is paid off. For its part, the interest on variable mortgages changes based on a reference index –usually it is the 12-month Euribor- to which a differential is added.
But it is also possible to opt for mixed mortgages: pay a fixed interest rate during the first years and a fixed term, a variable interest rate will be used later. This could be a good short-term option because of the lower fixed interest rate it offers. For example, Laura Martínez, spokeswoman for iAhorro, pointed out that in this way we can “ensure a fixed interest of around 2% -the average percentage in current offers- and then we’ll see”.
Best mixed mortgage offers
The greater interest in mixed mortgages is also reflected in the offers of some banks, which have improved their conditions. For example, the ING mixed mortgage allows you to choose between 5, 10, 15 or 20 fixed years, and the rest with a variable interest rate. The conditions can be improved depending on the linked products, but with the least linkage it offers a fixed interest rate of 3.5% for 10 years and then Euribor plus 1.19%.
In addition, ING allows you to contract a mortgage with a term of up to 40 years -as long as 75 years are not reached when that term is exceeded- and have up to 80% of the value of the home -appraisal value-.
For its part, Openbank also offers a mixed mortgage. Where appropriate, at an interest rate from 3.27% TIN for the first 10 years and the rest referenced to Euribor plus 1.39%. This interest can be improved -up to less than 800 points- if bonuses are applied. This Openbank mortgage allows you to contract a maximum term of 30 years
Another option is the Bankinter mixed mortgage, which offers a fixed tranche of 10, 15 or 20 years. The longer the period at a fixed interest rate, the more the applied rate rises. Specifically, part of the fixed 4.6% and then Euribor plus 2.05%. Bankinter also has bonuses that reduce the rate applied by up to 300 points. This mortgage, with a maximum repayment term of 30 years, requires that the holders have a monthly income of more than 2,500 euros.
In the case of Evo Banco, its mixed mortgage allows you to pay a fixed interest rate for five or 15 years. The fixed rate starts from 2.45% TIN –improvable with bonuses- and then a variable will be used that will be Euribor more than 1%.
Finally, Ibercaja’s mixed mortgage offers up to 80% of the value of the home with a maximum term of 25 years. Part of a fixed interest rate of 2.25% TIN during the first five years and then the Euribor plus 1.85% will be used. Ibercaja allows you to subsidize the differential by 100 points in the event of domiciling a salary of at least 2,500 euros per month, taking out home insurance and a savings plan.