As if it were a meteorite, the latest rate hike by the European Central Bank (from 1.25% to 2% at the end of October) has been devastating for the Spanish fixed mortgage market. Since this measure was taken, at least eight banks in our country have worsened the conditions of these products and have placed their interests significantly above 3% or, in some cases, up to 3.50%.

Are we then witnessing the end of the era of low fixed rates? According to analysts at the financial comparator HelpMyCash.com, opting for this modality is an increasingly less attractive option, given that banks have notably raised (and will continue to raise) the price of their fixed mortgages. Even so, they assure that competitive offers can still be found within this market, as long as the client hurry up and have a good profile.

The main person responsible for the progressive extinction of cheap fixed mortgages is the European Central Bank (ECB). To contain the high inflation in the eurozone, the institution chaired by Christine Lagarde has been forced to raise its interest rates three times so far this year: from 0% to 0.5% on July 21, from 0 .5% to 1.25% on September 8 and from 1.25% to 2% on October 27.

The bank’s reaction to the latest of these increases has not been long in coming: according to HelpMyCash, at least eight entities have increased the interest on their fixed mortgages since October 27. In many cases, the new price they offer is above 3% or 3.50%, which are interests that have not been seen in Spain for almost five years.

The banks that have made their fixed mortgages more expensive in recent weeks are, in chronological order, the following: COINC (from 2.90% to 3.40% over 30 years), Caja de Ingenieros (from 2.70% to 2, 95% to 30 years), Bankinter (from 3% to 3.50% to 30 years), MyInvestor (from 3.39% to 3.49% to 30 years), ABANCA (from 2.99% to 3.99 % to 30 years), ING (from 3.25% to 3.75% to 25 years), Banco Santander (from 2.89% to 3.89% to 30 years) and Openbank (from 2.62% to 2 .84% at 30 years).

This increase is motivated by two main reasons. In the first place, because the banks now have to pay higher interest for financing through the ECB; an increase that they transfer to the price of their fixed mortgages. And secondly, because the Euribor has skyrocketed as a result of the measure taken by the European banking supervisor. Consequently, the entities want to encourage the contracting of their variable mortgages (with which they earn more money), something that they try to achieve by worsening their fixed-rate loans.

Thus, after the latest rate hike by the European Central Bank, most fixed mortgages marketed by Spanish entities have an interest rate of around 3% or higher. However, according to HelpMyCash analysts, there are still a few banks that offer fixed mortgages below 2.50% or even 2%.

One of those banks is BBVA. Your Fixed Mortgage has, at the moment, an interest from 1.95% if the money is repaid in up to 15 years or a rate of 2.05% if it is repaid in up to 30 years. To access these conditions, yes, it is necessary to domicile the income in an account of the entity and contract your home and life insurance, in addition to enjoying a good economic situation.

Another outstanding product is the EVO Banco Smart Fixed Rate Mortgage. This online entity, which belongs to Bankinter, offers interest from 2.45% for a term of up to 30 years. In exchange, the client has to direct deposit their recurring income and take out the life and home insurance offered by the bank.

However, given the current market trend and the forecasts that point to more rate hikes by the ECB, it is more than likely that these fixed mortgages at less than 2.50% will soon disappear from the map. Therefore, if a person is interested in getting a fixed-rate mortgage, it is recommended that they process their application as soon as possible, as this will increase their chances of obtaining attractive conditions.

From HelpMyCash, in addition, they recommend the client to negotiate with several banks at the same time, either on their own or through a mortgage broker. In this way, if the final offer of one of the entities contacted is less competitive than what was initially promised, the applicant will be able to consider other alternatives.