The Euribor has run amok. If in September its records shot up (2,233%), everything indicates that in October the situation will not change. And the latter is important because this indicator is the one that determines what the variable mortgages whose installments are recalculated in November will cost.
In a context like the current one, in which the loss of purchasing power in Spanish households is constantly increasing as a result of uncontrolled inflation, variable mortgages become a real headache, with an increase in installments that it was seen since the indicator began to work in 1999. According to HelpMyCash, the rise in the monthly letter could reach around 35%, although this percentage can fluctuate depending on the spread that is contracted and the date on which it was acquired the mortgage.
The prospects are not at all encouraging for those who have variable mortgages. “It is time to act, waiting can have serious repercussions on the financial stability of the mortgaged”, add the experts.
If you do not want to pay a much more expensive fee than you used to pay, it is appropriate to try to moderate the blow and seek a refinancing of the loan. The most feasible option at this time is to switch to a fixed-rate mortgage, but not at any price. The interest rate should be below 3.5%, they recommend from the comparator.
The recommendation is to shield the mortgage payments by changing to a fixed rate. However, it is important to carefully study the conditions and the small print of the offer. The change affects costs and may involve the acquisition of new linked products that in the end end up making the mortgage too expensive. If after doing the calculations the numbers add up and you decide to make the change, then there are three ways to carry out this operation:
Whichever option is chosen, HelpMyCash recommends hurry up and speed up the change as soon as possible, since banks are raising their fixed rates. “It is still possible to find attractive offers with interests of less than 3% or up to 2.50%. But it is becoming more and more complicated for banks to grant this type of interest”, they indicate.
And although entities have begun to make their fixed rates more expensive due to the rise in the Euribor, attractive alternatives can still be found.
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