According to the latest Survey on Bank Loans published by the Bank of Spain, the demand for home loans grew significantly during the second quarter of this year. And for that trend to continue, many financial institutions they have decided to lower their mortgages this summer to make them even more attractive. This is stated by the analysts of the banking comparator HelpMyCash.com, who have detected significant reductions in both fixed-rate and variable-rate offers.
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Fixed mortgages keep getting cheaper
From this comparator they assure that the Spanish banks keep alive the fixed mortgage war that has been waged since last year. And it is that these products, even with a reduced price, allow them to earn more money than variable rate mortgage loans, whose interest is very low because they are linked to a Euribor that trades below zero (-0.484% in June).
Thus, in recent weeks, several banks have announced reductions in their fixed rates. For example, the interest of ING’s Fixed Orange Mortgage has gone from 1.60% to 1.50% (for direct debit payroll and take out home and life insurance), that of Liberbank’s 100% Fixed Rate Mortgage has dropped from 2.40% to 1.50% (for direct debiting the payroll, using a card, investing in some products and taking out their home and life insurance), that of the Active Fixed Mortgage of ActivoBank has been reduced from 1.60 % to 1.35% (for directing the payroll and taking out your life and home insurance) …
Archive image of a residential building under construction
According to HelpMyCash, there are even banks that have been encouraged to launch summer promotions. This is the case of Openbank, which has reduced by 0.15 percentage points the interest of your Open Fixed Mortgage if the client delivers the documentation in less than 10 days and entrusts the entity to obtain the simple note and the appraisal. In this way, you can get an interest from 1.15% (in exchange for direct debit payroll and take out your home insurance) if you start the application until July 31.
But these are not the only entities that market low-interest fixed mortgages. Although they have not lowered their rates, there are other banks that offer good conditions: interest from 1% of the BBVA Fixed Mortgage (by direct debiting the payroll and taking out your home and life insurance), the rate from 1.25% of the COINC Fixed Mortgage (without additional products) …
Possible change in trend
The price war reaches the variable mortgages sector
In addition to making their fixed rate loans cheaper, several banks have also dared to lower the interest on their variable mortgages, products that until now they preferred not to enhance due to their lower profitability. In fact, from HelpMyCash they affirm that many entities made these credits more expensive at the beginning of the year; a trend that could have come to an end this summer.
Among the loans that have become cheaper in recent weeks is, for example, the Vive Variable Rate Mortgage de Hipotecas.com, whose interest has gone from Euribor plus 1.59% to Euribor plus 1.39% (without additional products). ING has also reduced the interest on its Variable Orange Mortgage from Euribor plus 0.99% to Euribor plus 0.89% (for direct debiting the payroll and taking out its home and life insurance), while ActivoBank has dropped from Euribor plus 1, 40% at Euribor plus 0.99% the rate of your Active Plus Mortgage (without extra products).
Some entities have made variable rate mortgages cheaper
In parallel, other banks have launched new variable rate mortgages between June and July: the Deutsche Bank Online Variable Mortgage (from Euribor plus 0.95% for direct debit payroll and receipts, take out home insurance and other of life, use bank cards and invest in a pension plan), the Ibercaja Vamos Variable Mortgage (from Euribor plus 0.95% for direct debit income and receipts, use a card, take out home and life insurance and invest in a systematic contribution plan), etc.
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You have to negotiate to get a better interest
In view of all these discounts and new offers, whoever wants to buy a home this summer will be able to finance the operation at a good price. To this end, from HelpMyCash they advise comparing the offers of different banks and negotiating with each entity to try to obtain better conditions, since many entities are willing to lower the cost of their mortgages to attract customers (provided that the applicant has a good profile , of course).
However, the analysts of this comparator recommend not looking only at the interest rate when choosing the mortgage to contract. In that sense, they remember that this is conditioned, in many cases, to the contracting of other products that can cost money: insurance, accounts, cards, etc. For this reason, they advise calculating what would be the total price of all the loans that are requested to find out which would really be the cheapest.
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