Buying a house is an important step. The real estate market generates doubts in many clients, especially after the real estate bubble burst years ago and also with the rise in prices of all products due to the war in Ukraine.
The Euribor soars in March after eleven consecutive sessions on the rise, registering a provisional rate for the month of -0.307%, higher than the -0.335% in which February closed.
The European Central Bank (ECB) forecasts that inflation could exceed 7% in 2022 in the eurozone as a result of the war in Ukraine. If the provisional rate of the indicator is confirmed at the end of March, mortgages will rise significantly one more month. This is because a year ago, the Euribor stood at -0.487%, lower, or more negative, than that of March 2022.
With the increase in the price of electricity, fuel and the Euribor, there are those who wonder how they can save with the mortgage. It’s possible? Yes. There are some methods that allow you to improve it.
Keys to save with the mortgage
Transferring the mortgage to another bank, agreeing to lower it or canceling it are some of the options that allow you to save on a mortgage, according to the portal ‘Vivendex’. Each one has associated expenses, so it is advisable to study the case, seek advice and make a decision according to your interests. What each one consists of is explained below.
Novation
Talk to the bank where we have the mortgage and try reach an agreement with the entity to modify the original conditions: the interest rate, the amount or the amortization period.
This operation entails a series of associated expensesit is convenient to know them to know if it is convenient or not to request a modification.
Cancellation
Cancel the mortgage and contract another loan with new conditions. Keep in mind that canceling a mortgage has a series of expenses and also the opening of another mortgage (appraisal, notary, registry…).
surrogacy
Another option is to transfer the mortgage to another bank that can improve the mortgage conditions. The bank will be able to match or improve the conditions of the other banking entity within a period of two weeks, according to ‘Vivendex’.
With this operation, the client will have to assume another new appraisal -of the house- and possibly a commission for this operation.