The European Central Bank has not raised its rates since September and is expected to keep them frozen or even lower them over the next year. And that is good news for those who intend to take out a fixed mortgage to finance the purchase of their home, because it is very likely that its price will stagnate and decrease little by little as the months go by.
In fact, according to the financial comparator HelpMyCash.com, some banks have already begun to lower the price of their fixed mortgages during the last quarter of this year: Banco Santander, Banco Sabadell, ABANCA... Their analysts assure, in fact, that if the economic situation of the applicant is good, several entities are willing to offer fixed rates below 3%.
Banco Santander, for example, is one of the entities that offer a fixed interest rate below 3%. The rate of your Fixed Mortgage is 2.90% for the first six months and 2.80% for the rest of the term, conditional on direct debiting the income, taking out at least two insurance policies from the entity (home and life) and buy a home with an energy rating of B or higher.
The BBVA Fixed Mortgage also has a competitive interest: from 2.90% if it is repaid in up to 15 years or from 3% if the term is between 16 and 20 years; conditional on direct debiting the payroll and contracting home and life insurance with the entity. Furthermore, according to HelpMyCash, this entity can reduce its rates if the client has a very good profile and negotiates.
And this is not the only bank with which you can negotiate to get a better fixed interest rate. The comparator's analysts affirm that more and more entities are willing to reduce their rates, since they need to increase the number of firms due to the decrease in hiring that has occurred this year due, precisely, to the rise in mortgage prices.
The recommendation, therefore, is to negotiate with the maximum possible number of banks. This task can also be entrusted to a mortgage broker, who will contact entities that offer good fixed mortgages and try to reach an agreement with them so that they can further improve their proposals.
And what is the forecast for the coming months? The mortgage brokers Housfy and Bayteca, consulted by HelpMyCash, agree that the interest on mortgages, including fixed-rate ones, has already peaked. And they believe that it is likely that declines will begin to occur, although slight.
Thus, those responsible for Bayteca consulted by the comparator affirm that "the rates are expected to remain stable and, if there are changes, they will be of reduced magnitude." And from Housfy they emphasize that this trend “will help stabilize the number of hiring and stop the current decline” in signatures.
Now, both intermediaries assure that the greatest competition will not occur in the fixed mortgage sector, but in that of mixed mortgages. According to Bayteca, these are “the most competitive and the most in demand” by high-profile clients, while those responsible for Housfy consider that they are “the point of coincidence” between the interests of the bank and those of the client.
From HelpMyCash, however, they clarify that the evolution of mortgage prices will depend, to a large extent, on the behavior of inflation in the eurozone. If this continues its downward trend, it is likely that the European Central Bank will keep its rates frozen or until it reduces them, which will lead entities to make their mortgage loans cheaper. But if inflation picks up, it is possible that the decline in interest rates will take longer to occur.
