Why did the European Central Bank (ECB) raise interest rates? Euribor over 4%. The reference index pointed to 4.007%, the highest data since November 2008.
The ECB will meet again on 27 July… Then what? “Here’s what we can expect from the meeting on July 27, the last one until September: 25 basis points new increase to place them at 4.25% at interest rates. From here, stability can come.”, explains Simone Colombelli, mortgage manager at iAhorro.
Therefore, it is very likely that Euribor will not reach 5% in the short term. In fact, Colombelli emphasizes that “it is very likely that we are about to reach the ceiling or maximum of Euribor and within a few months we may start to see decreases in the values of this indicator”.
In this context… Would it be a good idea to take a variable mortgage? It depends on the user’s needs. “It is a very good product especially for investors.because we see variable mortgage offers with differences of up to 0.1% or 0.2%,” commented iAhorro mortgage director.
One of the best variable mortgages on the market EVO. Euribor offers an APR of +0.48% (2.20% for the first two years) and 4.26%. As for connections, it will be necessary to directly deposit more than 600 euros of payroll, unemployment benefits or pensions and take out home insurance.
don’t forget Ibercaja. This business has a variable mortgage with Euribor TIN +0.60% (1.50% during the first year) and 5.11% APR. All this, provided that the payroll and ordinary receipts are at the residence; the business’s credit card is used; two insurance policies (life and home) are purchased and a regular contribution is made to one of Ibercaja’s mutual funds.
on his behalf BBVA Euribor offers a floating mortgage with +0.60% (1.49% during the first year) and 5.16% APR. In turn, it will be necessary to deposit the payroll directly and buy two insurances (home and loan amortization).
It should also be noted that Freedom Mortgage of Banco Mediolanum. Euribor consists of +0.79% (0.99% during the first year) and an APR of 3.60%. To sign these conditions, the following must be fulfilled: opening a bank account with the business, permanent residence income equal to or greater than 3,000 euros, and taking out life insurance.
Less interests, but more connections
Other organizations offer mortgages with an even lower TIN, but require a large number of connections in return.
kutxabank is an example of this. User will benefit from +0.49% Euribor TIN (2.70% during the first year) and an APR of 4.63% as long as the user meets the following requirements: direct deposit of bearer’s payroll (equal to one amount or more) 3,000 per month), make an annual contribution of 2,400 Euros or more to Kutxabank pension plans and take out home insurance.
unicaja it also requires lots of connections. To sign a mortgage with Euribor +0.50% (1.49% during the first year) TIN and 4.88% APR, a user must have an income of more than 2,500 euros per month; domicile of payroll and main receipts; buy home, life or temporary disability insurance; get car or health insurance and contribute to a retirement plan or mutual fund.
For this reason… Less attention and more connections, or vice versa? Everything will depend on the user’s needs. There is no ideal mortgage for everyone, it depends on the situation of each.