Currently, the mixed rate mortgage is the most requested in Spain. Continue reading the article to find out why this is. Mixed rate mortgage A mixed-rate mortgage combines the characteristics of fixed-rate and variable-rate loans. In this type of product, during the first years an installment is paid with a fixed interest rate, and then a variable interest rate is paid. This is a mortgage product that just two years ago was very little known. However, it has become the most chosen option in the country. In August , mixed mortgages became the most in demand. To be exact, they represent of the mortgages signed. You may wonder why this type of product rose to fame , when a while ago it was practically not counted and few customers knew about it. Here we will tell you what causes this phenomenon.
What is the reason for the growth in demand for mixed mortgages?
There are different reasons why this type of mortgage has increase abruptly. These are the following: The Euribor situation The increase in the contracting of mixed rate mortgages is linke to the increase in the Euribor and interest rates. In other words it takes place due to the current paradigm shift. Those looking to take out a mortgage Sweden WhatsApp Number Data loan want access to a competitive interest rate. Without a doubt, this is an increasingly complicate task with a fixe rate. On the other hand, a mixe rate mortgage closes August at an average of during its fixe section. Among the main advantages offere by this type of mortgage loan, its versatility stands out. Prior to , changing the mortgage was something unthinkable, in other words, you had the type you had chosen when signing the mortgage until the end of the loan. However, today things have changed. In fact, the change of mortgage, in certain months of the year, reflecte of the total operations. In June , the Euribor surpasse the barrier, mortgage changes from fixed to variable rates represented of signed operations.
House price moderation
The average price of properties financed through a mortgage loan has already been declining for three months . The real estate market is already noticing the rise in interest rates, causing housing prices to drop, although Japan WhatsApp Number List the decline moderate in August. There are two possible reasons for this moderation of the decline that was recorded in August. On the one hand, it may be due to the decrease in activity due to the holidays. Another reason may be the rise in interest rates. In fact, more increases are expecte, since they are still far from the objective of controlling inflation, keeping it close to. Changing the mortgage implies great savings The reality is that a renegotiation of mortgage conditions is a very good idea for those who continue to be subject to revisions of their mortgage payments base on the Euribor. People who converte their mortgage to a fixe rate in August will be able to save, on average, about euros in their monthly payment, and those who opte for the mixed rate will save about euros.