Hiring mortgages It is going from strength to strength with the demand for housing on the rise and the reactivation of the economy after the Covid-19. After some operations were left in the air by the pandemic, in recent months the signing of mortgage loans has exploded, even on vacation. In August they increased by almost 67% year-on-year and so far this year they have grown by 19% compared to 2020, according to Statistics data. Some financial institutions want to take advantage of this pull to the fullest and throw the rest with improved offers to put the finishing touch to 2021.
The rebates to attract more customers and further increase the granting of mortgages focus on the fixed and mixed rates, which give banks more margin than variable rates due to the minimum levels of the Euribor index (-0.45%).
Some days ago, ING reduced the interest of their mortgages mixed and fixed at ten basis points. Thus, the Fixed Orange Mortgage it remains at 2.07% APR compared to the previous 2.17% APR. For its part, Mixed Orange Mortgage It has an interest rate for the fixed installment of the first ten years at 1.15% (before 1.25%) and maintains the variable period referenced to the Euribor plus 0.89%. The orange entity grants up to 80% of the appraised value and requires direct debit payroll and take out home and life insurance. It does not apply any type of additional expense for the formalization (notary, registry, agency and appraisal). ING had already applied discounts months ago.
Just after, Openbank It also made its fixed and mixed-rate mortgages cheaper again, both for new operations and for those clients who bring their loan to the digital bank.
The interest of the Fixed Open Mortgage It is reduced to 1.35% APR for a 15-year term and 1.54% APR for 30 years as long as a payroll or pension of at least 900 euros per person is paid and a home insurance with the entity. And an additional reduction of 0.10% is possible if the documentation is delivered within a maximum of ten days from the beginning of the request and the entity is entrusted with obtaining the simple note and the appraisal, in case of amounts greater than 150,000 euros.
In the mixed mortgages offers a fixed rate for the first ten years of 1.25% APR in terms of less than 15 years and 1.44% APR between 26 and 30 years. As of year eleven, the interest on the loan will in all cases be 0.49% plus Euribor, complying with the conditions.
With this move, Openbank now has the cheapest fixed mortgage on the market. “This greater aggressiveness is not new this year, as banks tend to apply reductions during the last quarter to close the course with better concession data,” says Miquel Riera, head of mortgages at the financial comparator HelpMyCash.com.
MyInvestor it did not take long to respond to the offensive of Openbank and ING. The neobank owned by Andbank España, El Corte Inglés Seguros and Axa España has reduced the price of its fixed rate mortgages to 1.39% NIR (1.58% APR) for 20 years and to 1.49% NIR ( 1.68% APR) to 25, which represents cuts of 20 and 10 basis points, respectively. It thus has the most affordable offer without linking, since the contracting of products is not required. Of course, they are aimed at family units with a minimum monthly income of 4,000 euros.
For its part, Sabadell Bank has given a twist to its 30-year fixed-rate mortgage by reducing interest from 2.71% APR to 2.59% APR. This type is subsidized by direct debiting the payroll and taking out three insurances from the entity: home, life and payment protection.
The heading of fixed-rate loans, in which the same installment is always paid throughout the life of the loan, is at all-time highs (67% of the total). “The outbreak of the pandemic has given a leading role to fixed-rate mortgages, since they reduce buyer uncertainty. And the statistical data show a generalized interest of Spaniards in fixed-rate mortgages,” says Josep Vera , director of business development for Mortgages.com.
Likewise, it highlights that “mixed mortgages are also presented as an alternative, since their price is usually lower than that of a fixed mortgage of the same duration.” He points out that “it is a solution for those people who are considering paying off their mortgage in advance, since the advantage of a lower interest rate is guaranteed and, in the case of paying early, it is possible that they end the loan sooner. to reach the variable period.
Too Evo Bank It cut the interest on all its mortgages by 0.05 points in mid-October, however, it has raised the linkage requirements. Now he asks, in addition to payroll and home insurance, the hiring of life insurance. The variable mortgage offers a differential from 0.83% with bonuses, while the interest of the fixed modality starts from 1.78% APR and that of the mixed one is from 1.04% for the first 10 years and Euribor plus the 0.93% the following.
“This may be a good time to take out a mortgage. Of course, before opting for an offer, it is advisable to go to different banks, compare your mortgage loans and negotiate to try to lower the price even more. In this way, the The client will make sure to get the cheapest mortgage possible, “says Riera.
On the other hand, there are entities that have chosen to facilitate financing for young people, who have more difficulties to access a home due to the lack of savings. A) Yes, Santander Bank or Ibercaja finance up to 95% of the mortgage for those under 36 years of age.
“The entities that still offer this type of product are concentrating on alleviating the lack of savings of this group, with higher repayment terms, greater financing or the need to present third-party guarantees”, indicates Vicenç Hernández Reche, CEO of Tecnotramit and president from the National API Association, who believes that these offers “are becoming less frequent, due to the dynamics of the market itself, which tends to individualize the offer for customers in general, without specifying age.”
According to the records of the hipotech Hipoo, only 8.17% of the mortgages signed in 2021 correspond to those under 35 years of age and the application for home loans made by this age range has gone from 45% in 2020 to 43% this year.
Banks usually grant 80% of the value of the home, so you have to have 20% of the price saved plus another 10% for expenses. In addition, the Bank of Spain recommends that the mortgage payment does not exceed 30% or 35% of income. The average savings contributed by those under 35 years of age stands at 42,299 euros, according to Hipoo.