Are you considering buying a home soon? Even though we have seen interest rate rises here in #Spain, this is still a good time to apply for a mortgage !
Banks have granted fewer mortgage loans than last year and are lowering their interest rates to disguise their figures. That is, if you search well and negotiate, you can get really attractive offers, whether at a fixed, mixed or variable rate.
But which banks offer the best mortgages ? Here I have selected the three cheapest commercial offers (those that entities openly advertise): one at a fixed rate, one at a mixed rate and one with a variable interest rate available to resident clients in Spain.
Banco Santander offers the best fixed mortgage
Let's start with the cheapest offer at a fixed rate. If you want to pay a stable instalment and live with peace of mind, the Banco Santander Fixed Mortgage is the best option. Its interest is the lowest in the market: 2.90% during the first six months and 2.80% for the rest of the term.
Starting in the second semester, yes, you must meet several requirements to get that interest : domicile your payroll, take out some insurance, buy an efficient home... If you do not meet any of these conditions, the applied rate can increase by up to 1.10 points percentages.
Banco Santander offers to finance up to 80% of the appraised value of a primary home or up to 70% of that of a second home. In the first case, the maximum repayment period is 30 years, while in the second it is 25 years.
Openbank has the most attractive mixed mortgage
On the other hand, if you want to protect yourself from the high Euribor for only a few years, paying an affordable fee, a mixed interest rate is better for you. And the Open Mixed Mortgage from Openbank is the cheapest within this modality. Its interest is only from 2.74% during the first ten years and from Euribor plus 0.55% for the following ones .
These types are subsidized for direct debiting recurring income and taking out two insurance policies with the entity: one for life and the other for home. If you decide not to subscribe to any of these products or services, your interest will increase by up to 0.40 percentage points.
With Openbank you can finance up to 80% of the appraisal or sale value of your future primary home (whichever is lower), with a term of up to 30 years. And if you want to acquire a second home, the amount will be up to 70% of the value and the repayment period will be up to 25 years.
EVO Banco has the cheapest variable mortgage
On the other hand, if you think that the Euribor will have already fallen significantly next year or the following year, a variable rate may better suit your preferences. The EVO Banco Smart Mortgage is the best of this class: it has interest from 2.30% for the first two years and from Euribor plus 0.48% for the rest.
The interest on this mortgage is subsidized by up to 0.40 percentage points for meeting the usual requirements: direct deposit of income (payroll, pension or unemployment benefit) and taking out the home and life insurance proposed by the bank.
Regarding the amount, EVO Banco can finance up to 80% of the purchase and sale value or appraisal of a primary home (the lowest) or up to 60% of that of a second home. The maximum repayment period is 30 years.
Get better mortgages with a broker
As we have already told you at the beginning of this article, the best mortgages that we have selected are commercial offers. But many banks change their conditions depending on the client's profile and how “heavy” they are at negotiating; something that you can take advantage of to get them to improve their proposals.
Therefore, you may be interested in hiring the services of a mortgage broker , which is a professional who is in charge of negotiating with several banks at the same time to get you the best mortgage possible. If you want, we can put you in contact with a trusted broker to study your case, without any obligation. Drop us a message here.
Article inspired by www.helpmycash.com helping you save money.
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