Rate hike: which banks still offer fixed mortgages at less than 2%?

Just six months ago, taking out a fixed mortgage was big business.

04 August 2022 Thursday 21:53
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Rate hike: which banks still offer fixed mortgages at less than 2%?

Just six months ago, taking out a fixed mortgage was big business. In February, almost all banks offered fixed rates of between 1% and 1.50%, which are the lowest ever seen in Spain. But the current situation is very different: due to the rise in interest rates by the European Central Bank, from 0% to 0.50% in July, most fixed mortgages are now contracted with interest rates that exceed 2% and are even close to , in many cases, 3%.

However, it is still possible to get a fixed mortgage with prices similar to those of a few months ago. According to the financial comparator HelpMyCash.com, there are a few banks that, despite raising their interest rates, still apply fixed rates of less than 2%.

Of course, not everyone can access these loans: they are only offered to officials, to clients with a very good purchasing power or to people who are willing to contract a considerable number of the entity's products.

BBVA is one of those entities. Your Mugeju Fixed Mortgage, exclusively for civil servants who are affiliated with the Mutualidad General Judicial (Mugeju), has an interest from 1.50% that can be obtained if the payroll is paid into a Basque bank account. If this requirement is not met, the applied rate rises to 2.50%.

The BBVA Fixed Mortgage, available to any customer, also has a very low interest rate: from 1.95% if it is repaid in up to 15 years and from 2.05% if the term is between 16 and 30 years. To get these rates, however, the applicant must direct deposit their payroll, their pension or their self-employment fee and contract the entity's home and amortization insurance. If none of these conditions are met, the interest rises to 2.95% and 3.05%, respectively.

CaixaBank also has a fixed mortgage of less than 2%. Your CasaFácil Fixed Mortgage has a rate from 1.70% if the term is up to 15 years, from 1.85% if it is up to 20 years and from 1.95% if it is up to 30 years. Now, you have to meet a number of requirements to get that price: pay your salary and three receipts, use a card, sign two insurance policies with the bank (home and life) and hire an alarm. If none of these conditions are met, the interest goes up by one percentage point.

Users of imagin, which is CaixaBank's mobile bank, can also apply for the imaginBank Fixed Mortgage, with an interest rate of 1.70% over 30 years if the salary is paid by direct debit (2.45% if this requirement is not met). ). From HelpMyCash, however, they comment that this product is only available to the most select clients and that the contracting process cannot be completed online, but must go to the CaixaBank office that the applicant has assigned.

The EVO Banco Smart Fixed Rate Mortgage also has an interest of less than 2%. Specifically, 1.85% for a term of up to 30 years, which can be obtained in exchange for direct debiting recurring income and taking out home and life insurance from the bank. The rate applied if none of these conditions is met is 2.20%.

As I imagine, EVO Banco only approves applications from customers who have a good economic situation: high income, very stable job...

The last bank that has a fixed mortgage at less than 2% in its catalog is Ibercaja. This is the Let's Go Fixed Mortgage, whose rate is 1.99% at 30 years. To get it with that price, yes, you have to tie yourself to the entity: it is necessary to domicile the payroll of the applicants for a joint minimum amount of 2,500 euros per month, use a credit card, domicile at least three bills, take out insurance of home and life of the bank and open a systematic contribution plan. The interest rises to 2.99% if none of these requirements are met.

Ibercaja also offers another loan for customers who do not want to contract so many products: the Easy Fixed Mortgage. And its price is lower than that of the previous product: despite having a higher interest rate, of 2.25% over 30 years, you only have to domicile the payroll of the holders for a combined minimum amount of 2,500 euros per month (the interest is 3.25% if this condition is not met).



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