“And it will continue to rise,” says the director of the banking business at Housfy Hipotecas, David Espiago, when asked about the future of the Euribor, the reference index for variable mortgages. “Not with excessive aggressiveness,” he qualifies.
Espiago admits that the majority of mortgage holders who use the services of his team’s mortgage brokers are choosing to cancel their current mortgage and open a new one with another entity, an option that he recommends as being more effective than renegotiating the conditions with the bank. current.
And it is that, according to the mortgage specialist, this option allows you to change from a variable mortgage to a fixed one, but also to extend the debt or lengthen the term of the loan, two of the most effective ways to alleviate the growing mortgage burden of households.
With the latest data from June 2023, when the 12-month Euribor registered a value of 4.007%, let’s see how much the monthly installments of various variable mortgages would increase depending on the amount of capital financed.
There are various options that a user has to alleviate the mortgage burden of his variable rate loan. Choosing one or the other will depend on your situation and your priorities as a mortgagee.
Negotiating new conditions with the bank —what is known as a mortgage novation— is one possibility, although in practice it is common for the bank to be more willing to negotiate with new clients than with current ones.
For people in a particularly vulnerable situation, the banks make available the Code of Good Practices with which the debt can be restructured without changing the entity, with advantages such as interest rate reductions or a grace period. The requirements to join, yes, are strict.
The most convenient options, as the experts consulted point out, are mortgage subrogation —bring your mortgage to another bank willing to improve it— or, directly, open a new mortgage and cancel debt with the previous bank.
