With the Euribor at historical lows, the doubt between betting on fixed mortgage or variable mortgage persecutes many buyers. After a few years in which getting bank financing for the purchase of a home could be complicated, in recent months the mortgage firm is growing at a remarkable rate.
Although the majority of mortgages signed - up to 94% - are of the variable type, the fixed mortgage has grown to 6%, when the previous year they were 4%. There are entities that propose them to avoid problems such as floor clauses, while there are clients who are inclined towards them in the fear of a rise in interest rates.
When we are going to sign a mortgage, we will find the following typologies:
The interest to pay over the life of the loan is constant, so that interest rises and falls will not affect us - which can be good or bad depending on the circumstances. Usually they tend to be somewhat more expensive, since the bank assumes a greater risk in case the interest rates go up. They are usually suitable for short credits, of about ten years.
In this case the interest of our monthly payment will be linked to some index - usually the Euribor - that will allow it to rise and fall from month to month. The customer assumes a greater risk of being able to find a remarkable increase, but can also benefit from a decrease.
Many entities offer mixed contracts, with a fixed rate during the first years and variable from a certain moment.
Barceló Real Estate is a real estate agent based in the beautiful hamlet of Ciudad Quesada, belonging to the municipality of Rojales, Alicante. From here we work tirelessly to offer the best selection of homes for sale.
We have been working for more than 10 years to provide our clients with the best properties on the Costa Blanca, such as the Costa Cálida, in beautiful towns like Torrevieja, Los Montesinos, Campoamor, Guardamar, Santa Pola, Los Alcázares etc ...