The Euribor, after registering an average of 0.852% last month, is in a historical monthly and year-on-year rise: it is close to 1% and pushes the fixed mortgage to 2%.
After looking at the Euribor graph, Simone Colombelli, director of mortgages at iAhorro, declares that “all the predictions we have made so far have fallen on deaf ears” and, therefore, “in a scenario of uncertainty such as the current one, it is very difficult to make an accurate forecast, even from month to month. We will have to wait at least until September to see how the Euribor behaves in the summer and, from then on, be able to make an estimate of this indicator for the end of the year; Beyond that, it is very difficult to get their behavior right.”
With the historical rise of the Euribor, the search for a good variable mortgage is a fact. The direct impact on the mortgage payment is inevitable, making it more expensive. Taking advantage of this situation, banks offer competitive interest rates that make contracting variable mortgages attractive.
First, Sabadell You present us your variable mortgage with really competitive interest rates TIN 0.99% fixed during the first year and after Euribor + 0.80% NIR fulfilling the following conditions: payroll direct debit, home or life insurance and payment protection insurance.
For its part, open bench offers its variable mortgage with a fixed TIN during the first year of 1.69% and from the second Euribor + 0.89% NIR direct debiting only payroll and contracting your home insurance.
We continue with Banco Mediolanum presents its Mortgage Freedom, the tailor-made mortgage to make your dreams come true, starting with a fixed TIN the first year of 1.50% and the following years a Euribor + 0.99%directing payroll or recurring income and taking out life insurance with them.
Finally, we find the variable mortgage of Santander Bank, which presents a reduction in the rate of 0.22% compared to last month, offering a fixed TIN during the first year of 1.87% and from the second Euribor + 0.77% TIN, direct debit of payroll, pension or self-employment payment ; use up to six times the credit card; take out four insurance policies (home, life, accident and disability) and have a home with an A+, A or B energy efficiency certificate.
As we mentioned in the introduction, entities have begun to promote variable mortgages by offering interest rates that are attractive compared to other types of loans on the market.
Are you interested in contracting a variable mortgage?
This is a recurring question at the moment in which we find ourselves when comparing between the different entities.
With the rise in the Euribor and the increase in fees, the following points must be taken into account:
– The term for which you want to apply for your mortgage. If you want to pay off the loan in 10-15 years, it could be interesting since the interest, in compensation, could be lower.
– If you enjoy economic stability, you can take the risk of contracting this type of mortgage.
In short, the entities are offering very attractive variable interest rates in order to encourage the signing of this type of product and beat the rise in the Euribor caused by the War in Ukraine and the consequent rise in inflation.
The best way to find the ideal mortgage is to compare all the offers on the market and find the one that suits your needs.