The Euribor maintains its upward trend after the August exception. This index, used in Spain to calculate the interest on variable mortgages, rose again in September (4.149%) after the slight decrease it had just a month before (4.073%). And looking ahead to the coming months, everything indicates that it could increase a little more and that it could end the year stagnant at values slightly higher than the current ones.
Given this scenario, taking out a fixed rate mortgage to buy a home does not seem like a bad option, as it allows you to protect yourself from possible future increases in the index. And in some cases, you can even pay a significantly lower fee. According to the financial comparator HelpMyCash.com, the best mortgages on the market that belong to this modality have a fixed interest of around 3%; much lower than the current value of the Euribor.
The case of BBVA is the most obvious. Its Fixed Mortgage has one of the lowest interests on the market: from 2.90% if the client chooses a term of 15 years or from 3% if the repayment period is between 16 and 30 years. In exchange, you must domiciliate your payroll or pension and take out the entity's home and amortization insurance. If none of these requirements are met, the applied rate increases by one percentage point.
With this mortgage loan you can finance up to 80% of the appraisal or sale value of a primary home (whichever is the lower of the two) or up to 70% of that of a second home. It does not include an opening fee, but it does have a compensation for partial or total early repayment of 2% (1.50% from the eleventh year).
According to HelpMyCash, the COINC Fixed Mortgage (an online brand of Bankinter) also has an interest rate lower than the Euribor: from 3.20% for ten years, from 3.25% for 15 years, from 3.30% for 20 years, from 3.35% at 25 years or from 3.40% at 30 years. In all cases, the rate is reduced by 0.40 percentage points in exchange for opening the Bankinter Payroll, Non-Payroll or Professional Account.
COINC offers to finance up to 80% of the sale or appraisal value of a primary home (whichever is lower) or up to 60% of a second home. Like BBVA, this entity does not charge an opening fee, but it does apply a fee in the case of partial or total early repayment: 2% on the advance if it occurs during the first ten years and 1.50% if it is carried out subsequently.
Finally, the interest of the third best fixed mortgage on the market is also lower than the current value of the Euribor. EVO Banco's Smart Fixed Rate Mortgage has a rate starting at 3.35% for a term of up to 30 years; subsidized by 0.40 percentage points for the direct debit of the payroll and for the contracting of home and life insurance offered by the entity.
This fixed mortgage allows you to finance up to 80% of the purchase of a primary home (or its appraisal value, if it is lower) or up to 60% of a second home. It has no opening fee and includes, like the other two loans mentioned, a compensation for total or partial early repayment of 2% (1.50% from the eleventh year).
But these are not the only entities that grant fixed mortgages with an interest rate much lower than the current value of the Euribor. According to the financial comparator HelpMyCash, there are other banks that can improve the conditions of their commercial offers if the client enjoys a good economic situation (high income, stable employment...) and negotiates. In fact, there are even financial companies that can offer rates below 3% if you know how to haggle.
In these cases, hiring a mortgage broker can be especially advantageous. This professional, thanks to his extensive knowledge of the sector, knows which banks usually offer better conditions to clients with a good profile. In addition, he has more experience when it comes to negotiating, so he will have a better chance of getting a lower fixed interest rate than an applicant could get on his account.
