The banks confirm a drastic change with mortgages throughout Catalonia

Attention from banks on mortgages. The real estate market is not going through its best moment, which has a direct impact on millions of Catalan families.

The latest data confirms what all the experts were warning: getting a loan to buy a home is much more expensive today than it was a few months ago. The rise in interest rates, which adds to the already existing problems in the market, do nothing but worsen the situation. That's why the banks ask that we prepare to see mortgages much more expensive than before.

  1. Mortgages are undergoing a change that directly affects families
    1. The last three fixed rates have been among the lowest in history
  2. The mixed mortgage, the phoenix of the mortgage market

Mortgages are undergoing a change that directly affects families

The mortgage market is certainly not going through its best moment. As a result of the rise in the Euribor, the difficulties have also been transferred to the products they offer and, therefore, mortgages require more financial effort.

A fact that has been reflected in the increase experienced between the months of June and September. As for fixed mortgages, average interest rates have increased by 0.54 percentage points. In contrast, interest rates have dropped by 0.17 percentage points for variable mortgages.

With these measures, variable mortgages would be intended to become a more attractive product for buyers over fixed mortgages. However, the current economic situation has favored the return of the mixed mortgage.

Facade of a residential building

| iStockPhoto (Greater Warsaw)

According to data collected by iAhorro, the average of fixed rates reached a nominal interest rate (TIN) of 1.72% between June and September, a very alarming figure if we consider that between January and in May it was at 1.18%. Therefore, an increase of 0.54 percentage points has been perceived.

However, variable rate mortgages recorded average interest of less than 0.82%, so they have experienced a drop of 0.17 percentage points between June and September, as they were at 0.99% between January and May.

The last three fixed rates have been among the lowest in history

In the words of Marcel Beyer, CEO of iAhorro, for 20 minutesthe latest fixed rates are among the lowest the mortgage market has experienced. However, he pointed out that the current data could be considered "normal".

The specialist confirmed, "but that is already a thing of the past. From May, we start to notice significant changes in the banks' offers and we already find quite a few offers above the 3% TIN, which in terms of TAE means approximately one more point». He has also insisted that a fixed rate mortgage could be considered reasonable as long as your TIN is below 2%. And even if it seems like an odyssey to find these values, he says that there are still entities that offer mortgages with these types of interests.

Apparently, the "best" fixed mortgage would have been granted in September 2022, when buyers could sign up for a mortgage with interest at 1.5%. However, Marcel Beyer has pointed out that this type of competitive offer is only common among profiles that are very attractive to banks.

The mixed mortgage, the phoenix of the mortgage market

Although it has been almost gone for 6 years, it seems that the mixed mortgage is becoming one of the most attractive options for buyers. This type of mortgage combines both types of payment, so you can get the benefits of both methods.

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During the first few years, which are usually between 3 and 10 years, buyers must pay a monthly fixed interest fee. After this period, the payment depends on variable interest. In any case, the borrower exposes himself to the fact that the benchmark to be paid rises and, therefore, so does the monthly fee.

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