Since reaching lows in 2021, the Euribor has experienced an increase of more than 4.5 points, significantly increasing the costs of variable rate mortgages. Despite this challenging panorama, the Organization of Consumers and Users (OCU) provides concrete advice to reduce this impact, including strategies such as negotiating a novation with the current entity or transferring to a bank with more attractive conditions. The OCU especially highlights the viability and affordability of changing banks, as the associated costs have been reduced in recent years, with appraisal fees around 300 euros and early cancellation fees ranging between 0 and 2%. of the outstanding capital.
The OCU emphasizes that, according to Royal Decree-Law 19/2022, early cancellation fees will be suspended until the end of the year, allowing mortgage holders to avoid these costs at least until the Euribor decreases.
The decision between a fixed or variable mortgage becomes a crucial element in this context. Although the European Central Bank has announced a pause in interest rate increases, forecasts suggest that the drop in the Euribor will not be rapid or pronounced. In this scenario, switching to a fixed mortgage can generate immediate savings, especially beneficial if you are looking to reduce monthly payments without surprises. Comparing a mortgage referenced to Euribor +1 with a fixed mortgage without links, the monthly savings can exceed 100 euros for an outstanding capital of 100,000 euros.
In addition, the OCU highlights that the change to other variable mortgages can also be profitable, since the reduction of the differential with the Euribor by 0.25% can translate into significant savings. Finally, it suggests the option of considering a mixed mortgage, with a fixed rate in the first years followed by a variable rate. This product offers initial stability in the installments and the flexibility to take advantage of a possible decrease in the Euribor in subsequent years.
2023-11-14 19:42:44
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