This is already a fact: variable mortgages are the focus of attention of banks. After starting June with an Euribor of 0.287%, organizations are very clear: they will bet everything on these mortgages based on this reference index.
Will this trend continue? It will depend on the rise of Euribor, which in turn will depend on two key factors: Russia’s war against Ukraine (inflation, energy shortages, etc.) and his decisions European Central Bank (ECB).
“There are rumors and leaks that the European Central Bank (ECB) will raise interest rates in July”, and if the body headed by Christine Lagarde finally makes that decision, “what it will do is, Add even more fuel to Euribor and we could reach 0.5% in a month or two.“, declares Simone Colombelli, mortgage manager at iAhorro.
Therefore, at this time variable mortgages with interest rates much lower than seen recently. This means that the time has come for people interested in this financial product.
One of the organizations with the most competitive bid, Kutxabank. Euribor offers +0.64% (0.79% over first year) TIN and 1.28% APR. This represents a decrease of 0.47% compared to previous months. To take advantage of this mortgage, its holders will need to have payroll (3,000 or more per month) domicile, contribute an amount equal to or more than 2,000 Euros per year to their Kutxabank pension plans. and get home insurance.
EVO You don’t want to be left behind and that’s why you have variable smart mortgage with Euribor +0.75% (first year 0.95%) TIN and 1.22% APR. In this way, the fee that the user will have to pay with a mortgage of 200.000 Euro will be approximately 646.68 Euro. It also requires fewer connections than Kutxabank: get payroll, pension or unemployment benefits of more than 600 Euros and home insurance.
Another entity with a highly competitive product is, BBVA. By debiting the payroll directly and contracting two insurance policies (home and loan repayment), a future owner has the opportunity to take out a loan with Euribor+0.79 TIN (0.89% during the first year) and 1.83 APR. %.
EN It has a similar TIN to BBVA, but with different terms. The interest is Euribor +0.79% (0.95% during the first year) and 1.64% APR. In this case, ING asks its customers to take out their payslips to reside and to take out two insurance policies (life and home).
We must not forget either Mediolanum Bank and your Liberty mortgage. The user will benefit from the Euribor +0.99% interest rate (1.50% in the first year), simply by directing the payroll and making a life insurance contract.
Is it worth getting a variable mortgage?
Organizations will do everything possible to make variable mortgages the most attractive mortgage product. Again, whether it would suit a client depending on their personal circumstances.
If what a person needs short term mortgage It may be an option to consider, as it will be less likely to be subject to large fluctuations in the Euribor, the reference index used in most cases.
On the other hand, this is important when a person is looking for a 30 or 40 year loan. explore all kinds of alternativesbecause it is a perennial period, there is a possibility that Euribor will go up and down many times.