Euribor has risen again, meaning floating mortgages are still on the agenda. “Institutions want to adjustable mortgage its star product and they make the fixed mortgage much more expensive to make it less attractive,” says Simone Colombelli, head of Mortgages at comparator and mortgage consultant iAhorro.
In fact, the indicator stayed at 2.629%, Highest data since January 2009. Also, considering that the European Central Bank (ECB) has increased interest rates by 0.75 points, likely to continue to rise for the rest of the year.
For this reason, if you take a look at the housing loan market, you can find extremely attractive products in the field of variable rate loans.
EVOfor example, it has a floating smart mortgage with a TIN of Euribor +0.60% (0.99% during the first year) and an APR of 2.04%. In return, you will only need to receive a salary of more than 600 euros, unemployment benefits or pensions and take out home insurance.
On the same line you can find a BBVA variable mortgage. Its TIN is Euribor +0.60% (0.89% during the first year), but the APR is up to 3.61% due to the connections required to take advantage of this interest. Specifically, payroll will need to be taken by residence and two insurances (home and loan repayment).
nor should we forget Kutxabank, because his TIN is Euribor +0.64% (2.77% in the first year). However, it has an APR of 3.23% due to the large number of connections that must be assumed to get the said interest rate: debit the owners payroll directly (amount equal to or more than 3,000 monthly), contribute annually Kutxabank 2,000 He makes retirement plans in Euros and above and takes out home insurance.
ING, for its part, has Euribor +0.69% (1.50% during the first year) floating mortgage and 3.45% APR. All this as long as the payroll is deposited directly into the account and two insurance policies (life and home) are issued.
Another institution that should be mentioned in the field of variable mortgages is; Mediolanum Bank. Your Freedom Mortgage has a TIN of Euribor +0.79% (0.99% during the first year) and an APR of 3.60%. The conditions to be met in this case are to open a bank account with the business, to make a direct deposit with a recurring income equal to or more than 3,000 Euros, and to take out life insurance.
I have a floating mortgage… Should I pay it off?
It’s a question many mortgage lenders often ask themselves at this final stage of the year. There is no one-size-fits-all answer with a variable mortgage because It depends on the state of each of their mortgages..
The first thing to keep in mind is that it is recommended. amortize the mortgage time (maturity amortization), not installment, because it is the most effective way to lower the loan interest.
It is usually best when following a French depreciation system. amortizes the mortgage in the first years of its life. It is the user’s way of eliminating further interest. Therefore, if an owner has 5 years left to pay his debt, it is not suitable for him to do this.
Likewise, in the case of variable mortgages, a situation with a rising Euribor is a good opportunity to depreciate. This is because the interest will be higher and therefore when depreciating, further cost will be reduced than if the procedure is performed with the indicator at the minimum.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.