The Euribor starts December with very good news for mortgaged. It continues to decline after recording its ninth monthly drop since the beginning of 2024 in November. These are data that pleased the ears of mortgage holders who renew their mortgage with the closing of November because it leaves great discounts. They have been suffering with the Euribor figure for two years, with cases in which they faced increases of up to 600 euros per month. This roller coaster makes the fixed mortgage be the queen again and make the mortgaged pay more attention to her.
They are the holders of a variable mortgagethose who have been considering for months no longer being subject to the fluctuations of the indicator that until months ago the majority of new mortgage holders joined, but which is losing more and more followers, being the fixed rate the one who has once again led the mortgage firm in the middle of the banking trade war, according to data published in La Información this week.
The fixed mortgage gains ground
Change to one fixed mortgagebefore December 31, that is, is one of the proposals that experts launch if we consider abandoning the variable. “Fixed mortgages continue to become cheaper (-14.31% compared to last year) and there are now 14 entities with offers below 3% NIR for a term of 25 years,” they explain from Kelisto.
And why before December 31? We must not forget that the cost of switching The rate of a variable to fixed mortgage – through subrogation or novation – has been significantly reduced in those banks that have decided to take advantage of the aid plan for mortgage holders approved by the Government and extended during 2024. In those cases, the entities will not be able charge a subrogation/novation fee and, starting in 2025, this charge will be limited to 0.05%.
This change, now that the euribor is on the decline, it seems to be forgotten by those mortgaged at a variable rate, but experts warn that, just like two years ago, the indicator referred to by the majority of mortgages in Spain did not stop rising – with increases of up to 600 euros per year. month in some cases – this situation can be repeated, so it is necessary to anticipate at all times possible changes, both upwards and downwards in the quotas.
In which cases it is interesting to look for a mixed mortgage
Another option that experts recommend to get off this roller coaster of mortgage expenses is to study the option of changing to a variable mortgage for a mixed“if you think you will have options to pay off debt early.” Mixed mortgages allow access to a more advantageous fixed interest rate than 100% fixed offers (there are mixed ones from 1.75% TIN), although this would only apply for some years: the more there are, the higher the fixed rate will be. that applies the
bank.
After this first stage, again, the mortgage would be variable again and, therefore, the user would once again be exposed to the fluctuations of the Euribor. “These types of offers would only be recommended for those who believe they can save during the first years of the life of the mortgage, since, once the variable tranche has arrived, they could amortize debt early in order to reduce the years that they would be exposed to the Euribor,” they explain from Kelisto.
Amortize help to reduce quota in the variable
Another option that experts use to make the variable mortgage cheaper is to amortize early part of the debt to reduce payment. In the event that the evolution of the Euribor puts the family economy in trouble, if those affected have savings, they could choose to pay off part of their mortgage early in order to reduce the installment they pay each month. If you do so, two things must be taken into account:
- The amount that is amortized is deducted from the outstanding capital payable.
- Although there are banks that do not charge amortization fees advance, those that do are subject to limitations established by law: in variable mortgages; 0.25% during the first three years, and nothing from the fourth (or 0.15% for five years and nothing from the sixth), and in fixed mortgages, 2% during the first 10 years and 1.5% from the eleventh. Now, in an extraordinary way, the banks that have decided to take advantage of the aid plan for mortgage holders approved by the Government will not be able to charge anything for this concept during 2024 to those who have a variable mortgage (as happened in 2023).
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