Due to the inflationary context in which we have been mired since the outbreak of the war in Ukraine, the Euribor has risen more than 4.5 points from the 2021 lows, which has triggered the quotas of the variable interest rate mortgages. From the Organization of Consumers and Users (OCU) They ask the Executive to extend the suspension of early cancellation fees beyond December 31. In addition, they give a series of tricks to save on your mortgage.
The OCU assures that it is possible to save 100 euros per month in the mortgage negotiating the conditions. They detail that there are several ways, such as negotiate a novation with the bank itself or subrogating to another bank that offers more interesting conditions. They say this last option is “simple and cheap”, since “its costs have been reduced in recent years.”
Now the payment for a new appraisal is around 300 euros; “while the commission for early cancellation ranges between 0% and 2% of the outstanding capital,” details the OCU. If we take into account how the Euribor is, changing to a fixed mortgagemeans immediate savingsaccording to the organization.
A “Euribor +1 reference mortgage pays an interest of 5.16% if reviewed with the October Euribor, compared to 3.05% for the best fixed rate mortgage without links, which represents a saving of more than 100 per month for an outstanding capital of 100,000 euros,” he points out in his release the Organization of Consumers and Users.
Monthly savings of 150 euros during the first year
Another option – they say – is change to another variable mortgage based on a 0.25% reduction in the differential over the Euribor. They give the following example: “P a mortgage with a nominal rate of 2.20% the first year, then referenced to a Euribor+0.5%, represents a monthly saving of 150 euros during the first year and 25 euros per month in successive years with respect to a mortgage reference to Euribor +1”.
Another option that the OCU addresses is switch to a mixed mortgage with a fixed interest in the first years that later becomes variable. “It is a product that combines the benefits of stable installments for a few years and the possibility of taking advantage of the probable drop in the Euribor in the following years,” he states.
The Euribor, an indicator used to calculate the installments of variable mortgages in Spain, thus touching maximums since 2008. However, after numerous consecutive increases in interest rates, the European Central Bank maintained the interest ratein its latest update.