This is the main beneficiary of the Euribor fall.
He Euribor called mortgage market in a year where this summer marked a turning point for the rate to which most mortgages in Spain. This was the moment when, supported by rate cuts by the European Central Bank (ECB), the decline began, which is still ongoing in October this year, resulting in large discounts for mortgage holders who, tired of unexpected payments, which in in some cases it reached 600 euros more per month due to the rapid growth of Euribor. They took refuge in a mortgage, which in this case is neither a hitherto variable favorite nor a new mixed one. Fixed mortgage has become the queen of the year.
“We have learned from our mistakes and made a choice in favor of safety. Euribor In times of decline, mortgage lenders still prefer to renegotiate the terms of their mortgage and move to a fixed rate,” explains Trioteca CEO Ricard Garriga. “Too many families have seen their economy in peril to ignore the fact that the variable rate is only for those profiles that can truly afford unpredictable scenarios,” he continues.
That mortgages have become a safe haven for those who have obtained a mortgage in Spain is also another conclusion of the analysis of the Spanish mortgage market that has just been presented by Mortgage Comparator and Consultant iAhorro. Besides, ” fixed mortgage is beginning to rise from the ashes and may soon take the mixed situation by storm,” they conclude. In just one year, fixed mortgage signings through this comparator’s experts have grown by 54.04%.
In fact, fixed mortgage contracts also increased month-over-month in the Rastreator mortgage comparator as they rose from 81% of contracts to 89%, being the most contracted as banking institutions continue to lower the price of this type of contract. loans to attract new clients.
What about a variable mortgage? Marcel Beyer, CEO of mortgage comparator iAhorro, states that “we will have to wait for the Euribor rate to fall below 2% for it to recover a little” and adds that “it is a very unattractive product for citizens right now and that is why it is being cut” Almost zero.”
Should I change my mortgage?
Experts believe it is still worth switching to a fixed or mixed mortgage, as currently those with a variable mortgage have an average Euribor rate of +0.60%, so they now have to pay 3.3% ( 2.7%+0.60%).
iAhorro notes that one of the reasons fixed mortgages have been recovering in recent months is reduction in interest rates financial institutions. So much so that the average interest rate achieved by this buyer’s users on fixed mortgages in the third quarter of 2024 was 2.66% TIN, which is 0.04 points lower than that recorded in the second quarter (2.70% TIN on average ) and 0.22 points lower than recorded in January-March (2.88% TIN).
Likewise, if we analyze how the panorama has changed in one year, we see that the average interest rate that iAhorro users paid on this type of mortgage fell by half a point: from the 3.11% NIR that the comparator recorded in September 2023 in 2.61% TIN was recorded for the ninth month of the current year.
Despite everything mortgage changessince Euribor is constantly decreasing, they are slowing down. Cause? Mortgage payments are starting to decline for many mortgage holders. But experts are asking for insight into the future challenges household economies may face in the face of the new bullish outlook.
From iAhorro they do the calculations: someone who has a variable mortgage pays at least interest of 2.936% (the figure with which Euribor closed last September) without taking into account the difference, and now there are fixed mortgages on the market in the region of 2.5 %. TIN or even 2.2% TIN; as well as a mixed mortgage with a fixed initial period of about 1% TIN. “So changing your mortgage now could mean saving over €100 every month,” they conclude.