12/21/2021 at 10:15 CET
The home sale market has seen significant growth in recent months. from Creditoh! , a fintech that specializes in mortgage advisory and brokerage in financial products targeting end customers through its platform, highlight that “the pandemic has bolstered the” sector. This is reflected in INE data, since a number of Mortgages As of August, it was recorded in 33,105 property records, an increase of 66.9% in the annual rate and the average amount of these mortgages increased by 1.9% and is currently 137,885 euros.
In this sense, in addition, there is a change of direction and Fixed interest prevails in new mortgagesat 67% while only 33% were at a variable rate. Which is in marked contrast to previous years’ data: in 2020 the flat rate was 45.7% and the variable rate was 54.3%. In 2019 the fixed rate occupied only 40% and the variable 60%.
Better credit terms
New and attractive major financial institutions launched Fixed rate mortgage products. The diversity of offers offered by banks, generates competition among them and leads to customers getting better terms on their mortgage loans.
Today’s data The average interest rate paid on a mortgage is around 2.5%., but we know that in the market there are offers for standard customer profiles at 1.25%, so if you devote yourself to searching for the mortgage that really suits your characteristics, you can save a lot of money; Says David Crespo, founder of Creditoh.
Fixed interest advantages
In the Fixed Rate Mortgages, the interest rate paid for the life of lend It’s the same thing, and this gives the person who signs the mortgage peace of mind and certainty about all the payments they will have to make within the agreed time as they will be paying a fixed date each month.
Is it possible to change a mortgage from variable to fixed?
If possible. The change can be made in two ways: on the one hand, there is renewal, which consists of continuing with the same financial entity with which we have the mortgage simply by modifying some of the terms.
On the other hand, there is a file Surrogacy: In this case, the bank is changed, thus improving the previous conditions. Both options entail a series of expenses that must also be evaluated.
Mortgage commissions and installments
Some banks have reduced or canceled Commission for opening your mortgage loan at a fixed rate, but there are still others who maintain it. The same applies to early repayment commissions.
The new mortgage law makes amortization commissions more or less equal, although it should be borne in mind that contracting out a fixed rate mortgage may carry a commission to offset the interest rate. This commission is not applicable at a variable interest rate.
This is a commission that can be given in case the bank suffers a loss at that time firefighting partial. “The advice on hiring is to negotiate in advance, and in the event we have to incur this commission, before making the repayment, ask the bank if the repayment I wish to make has a penalty. It is regulated by the new mortgage law, so the bank will have to provide us with this information before the partial amortization ” they conclude from Creditoh.
It should be noted that before choosing a Mortgage It is advisable to consult industry professionals and obtain adequate advice in order to obtain the best personal conditions.