Friday, December 3

Variable mortgages are still cheaper than fixed mortgages: which are the best?

Fixed-rate mortgage loans have never been so cheap in Spain, as most banks offer them with interest rates below 1.50%.

Nevertheless, take out a variable mortgage The average interest on these loans is still more costly than 1% plus Euribor and this index is currently at -0.477%, so it is significantly lower than that of fixed mortgages (at least as long as the Euribor remains in reduced values).

Thus, signing a variable rate mortgage can be a good option for those who want to pay a cheaper installment during the first years of the term (and perhaps the following years if the Euribor remains low). But which banks offer the best products of this type?

According to the financial comparator, are three online entities: Coinc, EVO Banco and Openbank.

Variable Coincident Mortgage

Variable Coinc Mortgage It is the cheapest within its modality. The interest on this credit is 1.89% fixed the first year and Euribor plus 0.89% the following, which can be obtained without the need to contract other products such as life or home insurance.

INC, which is an online brand that belongs to Bankinter, offers to finance up to 80% of the purchase of a home (60% if it is a second residence) and gives a period of up to 30 years to return the money. Your variable rate mortgage loan does not have any opening fees or full or partial early repayment fees.

Smart Mortgage from EVO Banco

EVO Banco Smart Mortgage is, according to HelpMyCash, the second cheapest variable mortgage. Their interest is lower than that offered by COINC: Euribor plus 1.85% the first year and Euribor plus 0.83% the following years. However, since you have to take out two insurances (home and life) and domicile the income to achieve it, its total price is higher.

EVO Bank is a virtual entity that also belongs to Bankinter. With your variable mortgage you can finance up to 80% of the purchase of a main home, with a maximum repayment period of 30 years and without opening fees or full or partial early repayment.

Hipoteca Open Variable de Openbank

This podium is completed by Hipoteca Open Variable de Openbank, whose interest is 1.95% fixed for the first year and Euribor plus 0.95% for the rest of the term. To achieve this, the client must domicile the recurring income and take out home insurance through the agency’s mediation.

Openbank (an online entity of Banco Santander) finances up to 80% of the purchase of a habitual residence or up to 70% of a second residence, with a maximum term of 30 and 25 years, respectively. It does not charge opening or partial early repayment fees, but it does apply a commission for total early repayment of 0.15% (0% from the sixth year).

It is advisable to go to several banks

Although these are the cheapest variable mortgages that are openly marketed, from HelpMyCash they affirm that there are other banks that also offer good conditions. And some, in addition, they can improve them if the client has a good profile and negotiates it.

For this reason, the analysts of this comparator advise going to as many banks as possible to see what conditions could be obtained. And once several proposals have been compiled, they recommend negotiating with each entity to try to lower the interest or other expenses associated with the mortgage: commissions, additional products, etc.

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