The big bank makes its fixed-rate mortgage showcase more expensive at the end of the year

2022 promised to be the takeoff year for mortgage prices and it is not disappointing. After a first half of the year marked by the development of a new mortgage catalogue, where the variable rate has gained prominence after the end of hibernation of the Euribor, the big ones of the sector have strongly embraced the increase in interest rates, making fixed-rate housing loans more expensive.

The big banks have tightened a little more in the range of credits not linked to the Euribor, where to find a fixed interest rate of 3% It has become a ‘rare bird’. According to the information collected by the ‘online’ comparator Kelisto, the majority of heavyweights in the sector offer financing for a 30-year APR home without a bonus at a cost that ranges between 4-5%.

Santander Bank He is the one who takes the lead in this regard. The group chaired by Ana Botín has raised its cost by more than one point, going from 4.19% in October to 5.23% on November 30. follows him bankinterwith 5.16%, although in this case the interest cost is the same as in October, while CaixaBank It is on their heels with an increase of half a percentage point in this period, which brings the cost of credit to 4.91%. Closely kept too Sabadell Bank, after going from 4.29% to 4.8% throughout November. BBVAFor its part, it would be offering a more adjusted cost, with a fixed interest rate of 3.81% (+0.16%).

Finding a fixed interest of 3% has become a ‘rare bird’

“The year comes to an end consolidating some trends, although with a bit more calm than could be expected at a time of constant rises in the Euribor and with the next ECB meeting just around the corner, the effect of which will most likely , the banks are already discounting“, the spokesperson for Kelisto, Estefanía González, specifies to this medium. The entities maintain the strategy that they began at the beginning of the year of an increase in mortgage prices fixed for the sake of converting to variable in a more attractive option in the eyes of the client, although they moderate the intensity with the that renew the showcase. If in October 40 modifications were recorded, in November the figure was 16.

This increase in costs occurs in a complex scenario, marked by the mortgage agreement between banks and the government to shield the most vulnerable groups with a package of measures to alleviate the mortgage burden on more than one million homes. aids go intended for households whose income is less than 29,400 euros, that the payment of the quota supposes more than 30% of the net income and that the amount has skyrocketed by 20% as a result of the Euribor ‘rally’.

As part of this agreement, which is part of the Code of Good Practices, the Executive has promoted a reform in Law 5/2019 through which the transition from variable to fixed rate is encouraged among the younger population with a lower price of the transfer commission from 0.15% to 0.5% only for loans with less than three years of life. The circumstance occurs that the mortgages signed after 2017 may be the most benefited from this program, since the financial effort involved in a mortgage loan is higher during the first few years, since that is when the majority of interest is paid and the borrowed capital is barely amortized.

The Euribor touches maximums of 2008

The higher cost of fixed mortgages occurs as a consequence of one of the effects collaterals of the rise of the Euribor. Specifically, the twelve-month index has closed at an average of 2.828%, compared to the 2.629% posted in October, marking 14-year highs. The positive note is that it moderates its progress compared to the jump of the previous months, which leads it to accumulate a rise of 3.3 points in the last year. Its about highest data since 2008, in full burst of the real estate bubble. Although it has not yet exceeded the level of 3%, the sector considers that there is no too much to cross the thresholdgiving way for the fixed rate to be even more expensive.

This situation has also led to a change in behavior in fixed rate contracting at the end of the third quarter. According to data from the National Institute of Statistics (INE), in September the proportion of this in new mortgages fell three points, to represent 68.2% of new formalizations. To find similar data you have to go back to December 2021. In the absence of knowing the proportion of the final stretch of the year, it opens the door to a possible disincentive of this type of financing, which had been crowned as the favorite by the Spanish since the beginning of 2020.

Source: LA INFORMACIÓN – Lo último by

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