We leave behind a difficult year for mortgage holders, in which there have been continuous increases in interest rates and the Euribor for practically 12 months. Luckily, 2024 begins with the predisposition that November and December left last year: a rate freeze. But not only that, there are more changes in mortgages, they will begin to go down.
The European Central Bank (ECB) already decided at the end of 2023 that interest rates would remain at 4.5% for the last two months, and, despite still waiting for the new update for 2024 on the 25th January, it is rumored with a conservation of this sentence. However, the president of the ECB, Christine Lagarde, warns that although inflation has been reducing, a temporary rise in interest rates is likely during 2024.
Given this scenario, financial entities have taken advantage of the moment to lower their prices, which is why the Euribor has also been gradually falling and reaches 3.5% this January, the lowest figure since last February.
If the Euribor ended the month with this percentage and in February it fell just one tenth more, already in this second month of the year those who have to do the annual mortgage review could see some reduction in their payments.
More good news for mortgage holders: they will be able to change their loan type for free throughout 2024. The Government and the Bank of Spain have agreed to extend the suspension of commissions for changing from a variable mortgage to a fixed or mixed one, a measure adopted to face inflation and be able to amortize capital to save interest.
Of course, there will be some conditions to be able to benefit from this measure. If the novation or subrogation of the mortgage is carried out in the first three years of the loan, the amortization or early repayment may not be greater than the loss suffered by the banking entity, with a limit of 0.05 percent of the returned capital. in advance. Furthermore, if the novation does not entail any early repayment, the bank will not be able to charge compensation for it.
If, on the other hand, the novation is carried out after three years from the granting of the mortgage, the bank will not be able to charge a commission for the application of a new interest rate or a first fixed tranche, a minimum of three years.
An effort has been made to reach a larger population that can benefit from the new aid that 2024 brings for mortgages.
To do this, mortgage payments are frozen for 12 months, the repayment period is extended to seven years and a two-year grace period is included in cases of annual income of less than 38,000 euros. This is a new limit from 2024, which goes from 3.5 to 4.5 times the Multiple Effects Public Income Indicator (IPREM).
After these changes, doubts may arise about how to get a mortgage in 2024, the truth is that there are some aspects to consider to make the right decision.
The first thing is to know our financial situation to be able to decide what type of mortgage is preferred, whether a fixed rate, variable or a mixed mortgage. For this choice, it is best to do a small prior study of the market, to know which may be more profitable, but when making the final decision, what you should evaluate are your needs and your financial capacity. In addition, there are tools that can help you get an idea of which would be the best mortgage for us, such as the mortgage simulator offered by Housfy.
Another tip to consider is to compare the offers offered by different financial entities to choose the one that best suits our profile. Finally, it is also highly recommended to go to a professional for advice, and to learn more about the real estate market and obtain the best conditions.
