2023-06-22 06:03:52
The change of course of the European Central Bank (ECB) with respect to the movements in interest rates does not seem to have moved the offers of the mortgage market to the rise. Despite the latest movements from the European supervisor, some entities, such as Openbank and BBVA, have decided to lower the fixed-rate home purchase loan. In this sense, and as stated on the websites of the entities themselves, these two banks have opted in recent days to adjust several of their products downwards, consolidating themselves in the positions of the cheapest in the market together with smaller entities. that seek to attract customers and increase their market share in the mortgage business.
Specifically, BBVA has lowered its fixed mortgage, going from 3.96 to 3.73% APR in recent weeks after applying all the bonuses offered by the entity (direct debit payroll and contracting two insurances, home insurance and payment protection). If these bonuses were not applied, the 15-year fixed-rate mortgage would carry an interest rate of 4.47% APR.
In the case of the digital bank of Santander, Openbank, the cost of the loan for home purchase is less than that of the entity of Basque origin if all the bonuses it offers are applied, although these are more numerous than in the previous case . Thus, if the payroll is domiciled, electricity and gas are contracted with Repsol, the Openbank credit card is used, two insurance policies are purchased (life insurance and home insurance) and subscriptions, contributions or fund transfers are made investment or pension plans marketed by the entity, the interest rate of the fixed mortgage would be 3.34% APR, as is. A few days ago this percentage stood at 3.43%, so the reduction that the entity has made is one tenth over the previous price.
Similarly, Openbank has also lowered the price of the fixed tranche of its mixed mortgage. Thus, if all the aforementioned bonuses are met, this product would remain at 2.47% TIN during the first ten years (until now it was at 2.60%) and a differential over Euribor of +0.55% during the rest of the life of the loan, which represents an APR of 3.22% (on average between the two tranches, so this figure is variable).
In the event of not complying with the discounts, the commercial offer of the Openbank mixed mortgage will have a cost for the first ten years of 3.27% TIN and the rest of the life of the loan a differential over the Euribor of +1, 35% (3.52% variable APR, following the same example as in the previous case).
The daily Euribor exceeds 4%
The Euribor, the reference that is used mainly to reference mortgages in Spain, exceeded 4% last Friday for the first time since 2008 after learning of a new rate boom by the ECB and looming a change of course in policy of the supervisor with possible new increases soon.
In this sense, the monthly average for June is already at 3.95% and the movement in recent days suggests that it could close the month at around 4%, causing new increases in variable mortgages.
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