Launching to apply for a mortgage loan means having cleared a few unknowns, the first of them opting for a fixed or variable rate. This means choosing between always paying the same interest during the entire life of the loan, in the first case, or reviewing the fees based on the movements of the Euribor (the average interest rate at which the Goodmoney Bank lend each other) or the referential agreed in each particular case, in the second. And then there are mixed mortgages, which offer a fixed multiannual period and then apply a variable rate. What is the best option? It depends on what we want and can takes over. In MoneyWise Lenders we give you the data for what values if a fixed or variable mortgage loan is better for you and you decide according to your situation.
Mortgage loans are increasingly contracted at a fixed interest rate
With a share of more than 38% in February, although variable interest mortgage loans are still preferred by consumers
In the same direction are the figures of the Spanish Mortgage Association (AHE), which sets the rate of fixed-rate mortgage loans in November 2016 at just over 30%, compared to 5.7% in 2015. The trend of Hiring fixed-rate mortgage loans is on the rise, although variable loans are still the favorites of those mortgaged according to the AHE, with 42.8% of the contracts. The remaining 27% corresponds to mixed mortgages, which usually have an initial fixed rate between one and ten years and a variable interest the rest of the time.
What type of mortgage loan is better?
As stated in the Organization of Consumers and Users, there is no fixed rule to say whether fixed mortgage loans or variables are better: “the choice depends on the circumstances of every moment”. Keep in mind that although the Euribor is now at record lows and in negative terrain, in the hottest times of the housing bubble exceeded 5%.
What under no circumstances is advised from the OCU, which on its website offers the help of a mortgage loan calculator, is the contracting of a mixed-rate mortgage loan: “they offer a fixed rate in the first years, depriving the mortgages of the current low interest rates, and one variable later, when the increases are more probable ”, they explain from the consumer organization, and then add:“ And it is not interesting to sign variable mortgages with a higher initial rate in the first years “
With respect to choosing a fixed or variable interest, the OCU recommends taking into account the perspectives on the evolution of interest rates. That is, these remain low while the economic recovery is consolidating, but the forecast is that they rise in parallel to the improvement of the economy.