Now that they are the most demanded in the market, fixed mortgages have become more expensive than variable ones; specifically, 63% since the first increases in interest rates in 2022, according to the INE register. But there are still suggestive options for those seeking financing.
This is the best interest that Housfy’s mortgage brokers have found for each type of mortgage, as of June 2023, thanks to negotiations with banks.
Fixed mortgages were a minority in Spain. Until 2016, they accounted for barely 3% of the loans made. Since 2021, the trend has been reversed and it is possible that it will continue in the long term due to the stability that characterizes them.
The best fixed interest rate that Housfy has agreed to as of June 2023 is 2.5% TIN, once the discounts have been applied. This is a figure that banks have granted to people with an extraordinary financial profile and after negotiating effectively with the financial institution.
Public statistics indicate that the average interest rate of fixed mortgages contracted in March 2023 in Spain was 3.15% TIN. This is 0.65% more expensive than the offer reported by Housfy.
It’s been around forever, but now it’s gaining notoriety. This type of loan is divided into two tranches: the first is fixed and usually has a lower interest than fixed mortgages on the market; the second tranche is variable and lasts until the end of the loan.
The best mixed mortgage in 2023 that Housfy has found has a first fixed interest at 2.10% TIN for 3 years and the rest of the period is variable at Euribor 0.2% TIN.
Its strong point is that it allows you to have a guaranteed first few years while the market readjusts. If the Euribor has dropped afterwards, the loan holder will be able to enjoy much cheaper installments.
If, on the other hand, it is still high, the holder has two options before moving to the variable tranche: either repay the mortgage early or change from variable to fixed rate.
The variable interest rate is losing its appeal, given a Euribor that has been volatile in recent months. To adapt to demand, banks have been forced to lower the spreads on variable mortgages.
The best variable interest rate that Housfy has processed as of June 2023 is Euribor 0.20% TIN, a percentage that only a privileged few have access to, since most banks do not offer differentials lower than 0.60% subsidized.
Espiago, from Housfy, still considers it risky to apply for a variable mortgage, even if it has a first year at a fixed rate, and does not recommend it unless the holder intends to repay in a very short term. “There is no guarantee that the Euribor will drop in a year,” clarifies the mortgage specialist.
Buying a home —and getting a mortgage for it— is still interesting these days, as long as the conditions that banks demand in this regard are met. An interest rate of around 3% is far from the 6.74% recorded by the National Institute of Statistics in March 2009, for example.
With a home price that does not seem to budge, waiting to buy is not the most coherent option if the intention is to buy sooner or later.
Of course, it will always depend on the applicant’s income and the mortgage in question. Although the banks have not placed major additional restrictions, most of them already require a one-year seniority with an indefinite contract.
Applicants who have a low income or less job stability find it difficult to find an entity that grants them financing in the current situation, so they will have no choice but to wait for a while. Or hire a mortgage broker, an increasingly praised figure in the real estate market, to find special conditions through its agreements with the country’s banks.
