Best fixed and variable rate mortgages, December 2020 – The offers from the banks that they are promoting in this late 2020 the cheapest mortgages in history. With benchmarks Euribor e Eurirs at the lowest levels, today it is possible to subscribe a home purchase mortgage floating rate starting from 0,20%. There remains a good time for too renegotiate the old mortgage or switch to a new bank through the mortgage subrogation.
Interest rates at historical lows drive the urge to buy a house with a mortgage. Despite the uncertainty of the moment, characterized by the ongoing pandemic, the real estate market, data in hand, has proven to hold its own against the 2019, which by the way had been a record year.
There is caution on the part of the operators of the banking sector e real estate, but a possible vaccine could have a positive impact on mortgages and home sales already starting from 2021.
At the moment, Italians continue to prefer the fixed rate, which thanks toindice IRS at the lowest levels, today it guarantees a blocked installment for the next few years below the 0,50%. This means that for a mortgage 100.000 euro in 20 years the monthly payment would be equal to 437,93 euro and the total to be repaid would be 105.103,20 euro, or about 20 euros per month of passive interests.
The best home purchase mortgages of December 2020
All banks establish a merit rating when they propose an offer to customers. Specifically, to have a mortgage quote personalized it is important to communicate to the credit institution theLTV (Loan to value), or the amount of the loan compared to the value of the property to be mortgaged. For example, if you needed a mortgage loan of 50,000 euros and the house cost 100,000 euros, a mortgage would be required with LTV 50%, with the advantage of having a rate reduction of interest, while if you had the need to obtain a mortgage 100%exceeding the maximum common threshold of different credit institutions, equal to LTV 80%, would result in a higher rate.
Below we will analyze the best offers in relation to all types of mortgage. We will see which are the best mortgages of December 2020 for a loan amount that does not exceed theLTV 50%, we will discover the most convenient mortgages up to80% of the loan-to-value ratio of the property and finally we will evaluate which are the mortgages up to 100% most advantageous of the moment, and which banks grant them.
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Best fixed rate and variable rate mortgages (LTV 50%)
The home purchase mortgage amount less than 50% of the value of the property to be mortgaged allows you to have i lower rates on the market. At this stage where the Eurirs indices are at an all-time low, mortgage applications with a fixed rate are all the rage. Today, in fact, in addition to two-thirds of those who apply for a mortgage in Italy choose the fixed rate mortgage. The main advantage of constant rate mortgages is determined by the non-existence of the risk of rate hikes, even if the benchmarks should rise in the future.
The best fixed rate mortgages of December with LTV up to 50% start at one 0,28%. In particular We believe the Bank proposes a rate linked to the 15-year IRS (currently set at 0.04) in addition to a spread of 0.32. Other banks like BNL, Unicredit e Agricultural credit apply a finite rate of 0,50% for a duration of 15 years and up to a maximum of1% for a maturity of 30 years of amortization.
Among the proposals of variable rate mortgage cheaper at the end of 2020 we find those of We believe the Bank, which applies a rate of 0,22% for durations of both 20 and 30 years. Also in this case the bank calculates in an algebraic way theNegative Euribor, subtracting the spread, specifically equal to 0.75, from the quarterly index, currently set at -0.53.
For a 20-year mortgage, Unicredit proposes a rate of 0.27%, Agricultural credit has a rate of 0.43%, B for Bank applies a rate of 0.52%, while Intesa Sanpaolo e BNL they offer a rate of 0.65%.
Best fixed rate and variable rate mortgages (LTV 80%)
For amounts of mortgage up to 80% of the value of the property, the proposals of Unicredit, which for a duration of 25 years old proposes a variable rate of 0,47% (Euribor 3 months + spread 1.00) and Agricultural credit, with a rate of 0,61% (Euribor 3M + 1.14). Below we find the offers of BNL, with an indexed rate of 0,75% (Euribor 3M + 1.30), and of Intesa Sanpaolo, with a rate of 0,85% (Euribor 3M + 1,35).
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Regarding the fixed rate mortgages cheaper than this final part of the year, several institutes offer rates below 1% for durations up to 20 years, such as Banco BPM, which applies a rate of 0,84%, e BNL, as well as Agricultural credit they promote a rate of 0,85%. For loan maturities a 25 years old the same institutions just mentioned apply a fixed rate equal to1,00%, while uBI Banca e Intesa Sanpaolo propose a finite rate of1,25%.
Best 100% fixed rate and variable rate mortgages
Who wants to buy a property through mortgage up to 100% can submit an application to the credit institutions that finance thefull price of the property. Not all banks grant 100% mortgages for the bond of land ownership. In fact, as established by the civil code, the financing for the purchase of a house cannot exceed 80% limit.
However, thanks to some initiatives, including joining the First home guarantee fund handled by Consap, various institutions can finance a total mortgage, although it should be noted that recently, with law no. 126 of 13 October 2020, some substantial changes which allow only certain categories to access the Fund, including:
- young people under the age of 35 with an atypical employment relationship;
- couples married for at least two years in which one of the members has not exceeded 35 years of age;
- single-parent families living with at least one of their minor children;
- the tenants of an accommodation owned by the autonomous institutes for public housing.
Those who do not fall into these categories can still obtain a mortgage up to 95% with different credit institutions that offer competitive rates. For example, Intesa Sanpaolo, BNL, We believe the Bank, Agricultural credit e Banca ING apply a Tan e Taeg around 2%, the perfect opportunity for so many families who plan to buy a house despite not having an important sum of money available to use as an advance for the sale of the property.
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