The Spanish financial sector is in a unique moment. Unlike what happened before the crisis, when interest were low but the price of housing was high, buying a property is now more affordable, mainly because these two indicators, price and interest, are at low levels.
This situation causes a gradual revival of the housing market. According to the National Institute of Statistics, housing sales up 20.5% year increased by June 2016. A study by financial comparison HelpMyCash.com and analyzed by habitaclia shows the advantages they now have mortgages vs arrival 2017.
- Differentials lower, reaching its minimum
2016 may be the last chance to sign with variable rate mortgages differential close to 1%. The banks are already moving all its efforts to improve its offer fixed rate mortgages and some banks have already begun to raise the differential of their variable mortgages.
Contrary to what had been happening since 2014, the banks have buried the hatchet on mortgage spreads. The reason for the decline and consolidation of Euribor 12 months in negative values.
Few entities have continued to focus on the variable rate after six consecutive months with a Euribor below zero. Differential discounts throughout the whole year counted on the fingers of one hand. Currently, the average spread of variable mortgages around 1%, according to data from the comparator.
Moreover, although fixed-rate mortgages in our country offer unusual interests, still they appear more expensive in the short term. Today it is possible to sign a fixed below 2% mortgage but a very short time, less than 10 years. For more typical of variable rate periods, such as 30 years, interest rise to 3%, almost 2 percentage points above an average differential.
- In 2017, the commissions will be more common
Following the directions of the Bank of Spain, the entities are incorporating more commissions on financial products. So far, variable rate mortgages have rarely included fee, however, more and more banks are setting the tariff, which is effective in processing funding. The commission can range between 0% and 1% of the borrowed capital. Thus, for a mortgage of 100,000 euros, with a 1% commission, the customer must pay an amount of 1,000 euros.
Currently, there are free mortgage loans origination fee yet. So, if you're going to sign a mortgage the last months of 2016, this is certainly another advantage is an interesting savings.
- The Euribor plus more expensive the cost of mortgages in 2017
According to the European Monetary Institute Markets (EMMI), this new mortgage rate will be released in 2017. It seems that their market value is positive and therefore higher than the current Euribor. Thus, a variable mortgage sign the final months of 2016 means benefit from more affordable fees in 2017, according HelpMyCash.
Keep in mind that the Euribor plus is not a new index but a modification of the current. The 12-month Euribor, applied in 90% of mortgages, estimates obtained with 24 major European banks data. In order to obtain a more reliable and less manipulable indicator, the Euribor plus not be based on estimates, but get real data. The sample of entities that provide the data will be extended.
The Euribor plus directly apply to new mortgages are formalized in 2017 and gradually be incorporated into mortgage loans pegged to Euribor signed before this date.
The advantage of signing a variable mortgage is that 2017 will enjoy a year with a lower interest rate, since the current Euribor quoted at -0.056%, while the Euribor plus positive quote.