How to avoid the increase in your mortgage and save €160 a month in the middle of going back to school

The scorching summer is coming to an end and September doesn't seem like such a bad idea.

NewsEditor
NewsEditor
29 August 2022 Monday 00:32
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How to avoid the increase in your mortgage and save €160 a month in the middle of going back to school

The scorching summer is coming to an end and September doesn't seem like such a bad idea. Until we began to see on television, on the marquees and now also on social networks, the classic "Back to school" advertisement. And everything that this implies comes to us: with our pockets emptied after the holidays, we have to pay tuition, material, uniform, extracurriculars... An increase in spending that comes at a time of runaway electricity, gasoline or shopping basket prices and, with these, a rise in interest rates announced by the European Central Bank.

Saving in these circumstances becomes a difficult task, but at the same time, essential. One of the most common fixed expenses of the family economy where we can save is on the mortgage. But, how to achieve it precisely now, that the rise in the Euribor can mean an additional cost of more than 100 euros per month in our fee? In this complex context, it is necessary to have platforms that offer solutions to combat the increase in these expenses, such as gibobs allbanks, a fully personalized mortgage advice fintech and, furthermore, it will not cost you anything.

The uncertainty that came with the pandemic, now combined with the effects of the Russian conflict and the increase in prices, has caused us to be more cautious when it comes to spending. Stockouts or delays in distribution, the increase in the shopping basket and the growing importance of sustainability are driving more moderate consumption, according to the latest Accenture trends report.

This moderation has also been imposed when contracting or modifying our mortgage, where getting a good interest rate, perhaps only with a difference of 0.20 points, can mean unimaginable savings for our pocket, since we are going to be linked to that mortgage every month for many years.

The average APR of the market in August, calculated based on the simulators that are available on the websites of the main national banking entities, is currently 3.26% for fixed rate mortgages according to Inteliens, which provides services of competitive intelligence to more than 50 entities worldwide. This represents a rise of seven basis points compared to July. It is also estimated that for this last quarter of the year some entities will continue to make their mortgages offered at a fixed rate more expensive or even stop offering this product.

"However, there are very competitive fixed-rate financing possibilities and we will continue to see financing possibilities even below 2% in some cases during the last quarter of the year. For example, taking this figure as a reference, in a 30-year mortgage of €250,000 would mean a total saving of €59,522 in interest compared to the market average", explains Fernando López Jiménez, COO at gibobs allbanks.

“This is possible thanks to a negotiation with the banks that seeks to obtain the best offer, and personalized advice for each client, even more so in a delicate moment like the current one, in which, however, improving financial health is possible, in all the cases that a mortgage can entail”, adds Fernando López Jiménez.

Through its platform, gibobs users can quickly and easily calculate how much they could save themselves on their mortgage, compared to the market average. Saving on the mortgage not only means taking into account the best option when contracting it, but also any change that can be made subsequently -change of bank or mortgage- with the aim of improving it and achieving greater savings.

The three options can improve the current conditions of our mortgage, but we do not always have enough information. "That's why at gibobs we help our clients find a healthy mortgage, which is one that takes care of our financial health, studying all the possibilities on the market," says Fernando.

To make the process of contracting a mortgage less tedious, uncertain and painful, “our advisers are experts in negotiating with banks, they speak the language of the clients and they know whether or not the bank offers are the best they can give. Our job is to get the best mortgage conditions so that the client does not have to pay more. In addition, we accompany you at all times to explain, support, recommend... and all this at no cost", says Fernando López.

This support is what the clients of this platform value the most according to their reviews on Google, in addition to the fact that they do not have to leave home to go from bank to bank.

On the other hand, if we already have a mortgage, for example, a variable one, at Gibobs they help you to obtain a more competitive fixed rate, in order to avoid possible rises in the installment. Another alternative offered by gibobs is to manage the mortgage at a mixed rate so that the first 10-15 years we pay a very competitive fixed rate, making sure that we are not affected by possible rate increases during the first years of the loan, for later moving to a variable rate, but having already amortized a large part of the loan.

From the gibobs platform and thanks to the new "My Loans" functionality, the customer can track the mortgage and find out if we have the best offer we could have gotten or if, on the contrary, there are better offers for their specific needs in the market, regardless of whether you have obtained your mortgage with these or already come with a previously signed one.

Being honest, the mortgage is a product that you don't want to get into and in which nobody is happy at the time of contracting, not only because of the long and bureaucratic process that it implies, but also because the word "mortgage" means a home, a family and some illusions, and for this reason it can be a path of suffering if we suddenly see our quota increase that is difficult for us to assume. Being sure that we are not overpaying for our mortgage because it is the one with the best market conditions is, therefore, a great peace of mind.

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