The escalation experienced by the 12-month Euribor, the reference rate for the majority of variable mortgages in Spain, since February, given the possible rise in official interest rates, the mortgage showcase has changed. The index closed February at -0.335% when just a couple of months before it was down -0.5%. Thus, several financial entities have already reformulated their mortgage offer, either by raising fixed prices, or by lowering variable prices, or both. The general strategy now is to promote variable mortgages over fixed ones, the opposite of recent years, to take advantage of the new rate scenario that is coming.
Bankinter, BBVA, Banco Santander, Openbank, Coinc and Evo Banco have lowered their variable mortgages. In addition, except for Evo Banco, these entities and Ibercaja and ING have raised fixed mortgages.
Specifically, Bankinter and BBVA were the first to make a move in mid-February. Bankinter lowered the fixed exit rate from 1.99% to 1.25% in the first year and cut the spread added to the Euribor by 14 basis points, from 0.99% to 0.85%. In fixed-rate loans, it raised prices between 15 and 20 basic points depending on the term. Thus, they have gone from 1.25% to 1.45% (2.20% APR) at 10 years, from 1.25% to 1.50% (2.20% APR) at 15 years, from 1.30 % to 1.55% (2.22% APR) at 20 years, from 1.35% to 1.60% (2.24% APR) at 25 years and from 1.45% to 1.65% (2 .27% APR) at 30 years. The rest of the conditions are maintained: a family income of at least 2,500 euros per month is necessary and the non-mandatory contracting of the payroll account, home and life insurance and/or pension plan.
BBVA, for its part, reduces the initial fixed rate from 1.99% to 0.99% for the first twelve months and cuts the differential to 0.89% for linked customers, with payroll, home insurance and payment protection . In the fixed offer, the rates rise from 1.45% to 1.50% TIN (2.36% APR) at 30 years, from 1.30% to 1.45% TIN (2.22% APR) at 25 years, from 1.20% to 1.40% TIN (2.90% APR) at 20 years and from 1% to 1.35% TIN (2.06% APR) at 15 years.
Coinc, an online entity integrated into Bankinter, has reduced the interest on the variable mortgage from 1.89% to 1.50% the first year and Euribor plus 0.80% from the previous 0.89%. Fixed rates have been tightened between five and ten basis points: from 1.25% to 1.30% (1.59% APR) at 10 years, from 1.25% to 1.35% (1.62% APR ) to 15 years, from 1.30% to 1.40% (1.66% APR) to 20 years, from 1.35% to 1.45% (1.70% APR) to 25 years and from 1, 40% to 1.50% (1.75% APR) at 30 years. This entity does not require any linked product.
For its part, open bank, the online entity of Banco Santander, has lowered the fixed interest for the first year from 1.95% to 1.75% and maintains the 0.95% differential that is applied to the Euribor for the rest of the years, fulfilling conditions. Fixed rates rise 15 basis points to 1.35% (1.65% APR) up to 15 years, to 1.40% (1.69% APR) from 16-20 years, to 1.45% (1.74 % APR) from 21-25 years and 1.50% (1.78% APR) from 26-30 years. However, the reduction of 0.10% on the TIN is still in force in operations over 150,000 euros. Thus, in the case of the term of up to 15 years, the TIN would drop from 1.35% to 1.25%. It is necessary to domicile the payroll of at least 900 euros per month and take out home insurance.
Ibercaja has changed the offer of your Let’s Mortgage to a fixed rate. Instead of 1.50% APR for 20 years, it now offers 2.16% for 25 years, fulfilling conditions: payroll of at least 2,500 euros per month, card use, direct debit receipts, home and life insurance, investment funds .
ENG It has also raised its fixed mortgage from 1.40% TIN to 1.75% TIN (2.41% APR) at 25 years, with payroll, home and life insurance.
Equally, Santander Bank has adapted its mortgage offer to the new market situation with an improvement in the conditions of variable rate mortgages based on the loan and discounts and an adjustment of the fixed rate. From the entity they point out that the final rate, very competitive, always depends on the client’s profile, the term and the amount of financing. For example, for financing of up to 80%, it offers a fixed starting rate of 1.98% for the first six months and a spread over the Euribor of 0.88%. At a fixed rate, it offers 1.88% at 25 years.
Finally, Evo Bank, Bankinter’s 100% digital entity, announced last week a reduction in variable rates while maintaining fixed rates. Your variable mortgage now starts at a fixed rate during the first year of 1.15% (compared to the exit rate of 1.85% of the previous offer) and then offers Euribor plus a spread of 0.79% -compared to 0 .83% anterior-. It is thus the cheapest variable offer on the market at the moment, with the only differential below 0.80%. The client only has to provide a salary of 600 euros per month and take out home insurance.
In 2021, more fixed mortgages were contracted than ever, almost 70% of the more than 400,000 formalized in the year, because the entities offered the lowest prices in history. With the Euribor at record lows, fixed loans have provided more margins for banks. However, now that the Euribor has begun an upward trend, banks are betting again on variable loans. “The forecasts point to an increase in the Euribor throughout 2022, which will increase the variable rates,” says the analyst of the Spanish Mortgage Association (AHE), Leyre López, who adds that “in no case is it expected that the Euribor to be in positive values” this year.
From iAhorro, Simone Colombelli, explains that fixed mortgages have been the great beneficiaries of the decline in the Euribor in recent years. Both entities and users have opted for this type of loan, taking away the role of mortgages. And she points out that “if this change in the Euribor trend is finally maintained, the banks will make a move and it is possible that they will improve the offers of their variable loans and worsen the rates of the fixed ones a little.”
According to HelpMyCash, banks are now interested in signing variable mortgages, as they hope to earn more money with them in the medium and long term. All in all, the comparator maintains that “contracting a fixed mortgage can be a good option for those who do not want to risk paying more for a rise in the Euribor.” In case you want to sign one of these products, the analysts of this comparator recommend processing the request as soon as possible, since it is very likely that the banks will continue to increase their fixed rates in the coming months. In his opinion, “contracting a variable mortgage can be convenient for those who want to pay little during the first years” and believe that the Euribor will not rise much more.