Euribor closed November at 2.828%, a slight slowdown from October’s 2.629%. It continues its gradual rise and is edging toward 3%, a trend that keeps banks focused on mortgage products tied to variable rates.
So, what would be an appealing variable mortgage right now? A variable rate with only small differentials up to 0.20% or 0.30% to help stabilize Euribor levels is often considered favorable, according to Simone Colombelli, the director of mortgages at iAhorro.
Another factor to weigh when hunting for a good variable mortgage is the binders. Lower interest rates usually come with more bundled requirements, which can raise monthly costs due to extra insurance, cards, home security, and similar commitments.
It should also be noted that it can still be a good time to pursue a mortgage. If someone plans to apply for a loan, doing so sooner may be wise, since the future scenario looks less favorable and offers available in coming years could tighten. Banks have paused a bit, but that pause may not last long, Colombelli notes.
Among notable options, BBVA offers Euribor +0.60% (0.89% in the first year) with a 3.97% APR, provided payroll is domiciled and two insurances (home and loan amortization) are purchased.
EVO steps close with a variable smart mortgage at Euribor +0.60% (0.99% in the first year) and a 3.31% APR. Conditions include payroll above 600 euros, direct debiting of the pension or unemployment benefit, and a home insurance contract.
ING also presents a competitive option, delivering Euribor +0.59% (1.50% in the first year) and a 3.71% APR. The package requires life and housing insurance and payroll registration with the employer.
Another institution to consider is Mediolanum Bank, which offers a Freedom Mortgage with Euribor +0.79% (0.99% in the first year) and a 3.60% APR. The terms include opening a business bank account, maintaining a direct steady income, and holding life insurance of at least 3,000 euros.
Finally, Open Bank presents a floating mortgage at Euribor +0.70% (1.70% in the first year) with a 3.69% APR. Requirements include direct salary deposits, electricity and gas contracts with the provider, and two life and home insurance contracts.
Government measures
One government move affecting mortgage loans has been the elimination of the surrogacy commission from January 2023. This change allows borrowers to transfer their housing loan to a bank offering better terms by paying only the appraisal fee.
This measure may benefit homeowners with existing variable mortgages who realize there are now products with more favorable terms. It is possible to replace a variable mortgage with a fixed one or to sign another variable mortgage with a smaller differential.
In both scenarios, the core advice remains the same: compare options carefully to find the mortgage that best fits the individual financial situation.