The year 2015 closed with a positive balance in the mortgage market and after a few days of having welcomed 2016, banks are expected to release the second phase of the so-called mortgage war.
In this scenario, entities are clear that they cannot offer the same conditions they imposed only a couple of years ago. The Good Finance.com comparator collects the characteristics that a mortgage should meet to be considered “good” in 2016.
During this year, variable mortgages will continue to be a better option than fixed and mixed mortgages, thanks to the low interest and historical lows of the Euribor, the most common mortgage index. Despite this, for a few months the commercialization of fixed-rate mortgage loans has broken into force . Banks have opted for fixed interest by lowering it to levels never seen in Spain.
From the comparator they recommend not accepting a variable mortgage with an interest higher than Euribor + 1.25%, complying with all the bonding and Euribor + 2.50%, without contracting the related products.
In general, the opening commission on variable mortgages has been extinguished in most offers . However, some banks include a total or partial withdrawal commission, which by law cannot exceed 0.50% during the first 5 years and 0.25% from the sixth. In this context, in 2016 it will be easier to find offers totally free of commissions.
In terms of fixed mortgages, the opening is the most common commission. It is difficult to find a fixed mortgage in which you do not have to pay more than 500 euros just after signing the contract. One of the few banks where we can get rid of it is in Abanca, hiring the Goodbank Mortgage at a fixed rate, with an interest of 2.49% TIN at 20 years.
To compensate for the drop in spreads and interests, banks require to contract products with the same entity that normally have a cost. That is why in Good Finance.com they recommend making calculations and assessing what matters most, taking out insurance or not. To do this, you can use a free mortgage calculator. Almost all offers require direct payroll, which does not involve any cost and take out two insurances, one for life and the other for home .
So that the price of the mortgage is not triggered, in 2016 it should be assessed whether a link higher than this suits us or not.
For those who want to save the cost of insurance, there are entities such as Hipotecas.com that markets loans without having to contract any additional links. Among its mortgage portfolio, we find the Variable Mortgage at Euribor + 1.59% without commissions and without linking.
The bank is gradually ceasing to be the financial advisor of its clients. Little by little we are gaining awareness that entities look for their own benefit and not for customers.
That is why those interested in applying for a mortgage in 2016 will require the bank to provide them with all the characteristics of the mortgage , and with the information in hand, it will be they who will decide whether or not that loan suits them.