The upward trend is the order of the day, not only because of inflation, but also because of Russia’s attack on Ukraine. It is for that reason that the euribor ended the month of February standing at -0,33%, 0.171% more than what was marked in the same month in 2021.
What does that mean? The mortgages that have to be reviewed during that month the fee will have risen between 140 and 300 euros per year taking as an example homes between 150,000 and 300,000 euros.
However, that does not mean that we must stop betting on variable rate mortgages. In 2021, a time when the Euribor reached its historical minimum (-0.505%), entities began to opt for fixed-rate mortgages, lowering their interest and, in this way, turning them into very attractive products. At the moment, instead, the banks have already started to move are lowering the rates of variable mortgages.
“If this change in the Euribor trend is finally maintained, the banks will also make a move and it is possible that improve the offers of your variable loans and fixed rates get a little worse, ”says Simone Colombelli, director of mortgages at iAhorro.
Is it convenient to choose a variable mortgage then? It all depends on the situation of each person. It must be remembered that the Euribor is a cyclical index, that is to say, that in the same way that it is now on the rise, it can go down again and touch minimums. Therefore, if you are looking for a mortgage with a short amortization period It may be a good option to opt for one of floating ratesince the user does not risk a radical change in the Euribor.
In the event that a person is going to opt for this route, it is important take into account all the options on the market. In this way, the user will be able to choose the product that best suits their needs.
One of the entities that has lowered its interest the most in terms of variable mortgages is Bankinter. It has lowered rates by 1.47%, therefore, it offers a TIN of Euribor +0.85% (1.25% during the first year) and an APR of 1.90%. In this way, this product is positioned as one of the best right now. The required links will be to create a Bankinter account, purchase a pension plan and take out two insurance policies (life and home).
For its part, BBVA It has not been left behind either and has lowered its interest on the variable mortgage by 1.15%. The client will enjoy a TIN of Euribor + 0.89% (0.99% during the first year) and an APR of 1.36% in exchange for direct debiting the payroll and taking out two insurance policies (home and loan repayment).
Some banks choose to wait
Not all entities have started to change types due to fluctuations in the Euribor. Some banks have decided to wait to see how the market evolves in the coming months.
Example of this is Banco Mediolanum, which maintains a TIN of Euribor+1.05% (1.75% during the first year) and an APR of 2.04%. The user will obtain this interest in exchange for contracting a checking account at Banco Mediolanum, a product that will be free during the validity of the Freedom Mortgage.
In addition, Bank has chosen this strategy in your variable mortgage Mari Carmen. It has a TIN of Euribor +0.99% (0.99% during the first year) and an APR of 2.89%. If the client opts for this option, it will be necessary to domicile the payroll, make up to 24 purchases a year with the entity’s credit card and take out two insurance policies (life and home).
It can also be highlighted the variable mortgage Sabadell. By direct debiting the salary and acquiring three insurance policies (home, life and payment protection) the future owner will be able to sign the loan with a TIN of Euribor +0.99% (1.75% during the first year) and an APR of 2, 92%.
In short, if the Euribor maintains this trend, the banks will continue to move the interest on their variable mortgages. Therefore, it will be necessary to closely monitor the evolution of the mortgage market.