New variable mortgage with ceiling clause Due to the rising price of the Euribor. Whose value has risen significantly over the last year, true chaos has taken place in the mortgage market . Mortgage payments on variable rate loans have increased and banks chose to. Also increase the interest on their fixed and mixed rate mortgages. Faced with this situation, some banks launched two new variable mortgages that do not become more expensive if the Euribor exceeds a certain value . In other words, these loans have a maximum interest (a ceiling) that is applied in case this index continues to climb. However, are these products convenient? Here we explain it to you. How does the new variable mortgage with a Euribor cap work? ABANCA and Caixa Popular are the two banks that offer this new mortgage. Here we will show you what their variable mortgages are like with the interest cap.
Mari Carmen Plus Mortgage from ABANCA
The Mari Carmen Plus Mortgage from ABANCA has an interest rate that ranges from for the first year and from Euribor plus for the next ones . However, between the second and sixth year, if the value of the Euribor Turkey Email List becomes greater than , the bank will consider that it is at . In other words, the interest on this loan can never exceed in that period, regardless of whether this rate rises. The interest on this mortgage is subsidized for direct debiting a minimum recurring income of , euros per month, for taking out the entity’s life and home insurance and for using one of its credit cards. In the event that all bonus requirements are not met , the applied rate increases by one percentage point , so the maximum interest cap will be between the second and sixth year. Caixa Popular Armored Installment Mortgage The Caixa Popular Armored Installment Mortgage has an interest rate that varies depending on the repayment period selected by the client.
Capped loans are more expensive than the average variable rate mortgage
As you can see, the two variable capped mortgage options provide some protection in case the Euribor continues to skyrocket . However, the reality is that this security has a price, since its conditions. Are worse than the average in the mortgage market for that type. To understand it better , the average variable mortgage has an interest rate of Euribor plus ( fixed for the first year), which is lower than the Malaysia Email List two products mentioned. There are even banking entities that offer even better conditions, for example. The Open Variable Mortgage from Openbank, offers an interest from Euribor plus . Is it advisable to opt for the new variable mortgage with a Euribor cap? After seeing the conditions of this type of mortgage loan, it is logical that we ask ourselves to what extent. It is convenient to take out a variable mortgage with a ceiling with ABANCA or Caixa Popular. If we consider that the average variable rate is Euribor plus , these two mortgages would only be convenient if the. Euribor were above (ABANCA) or (Caixa Popular) in the period in which they allow you to apply their maximum interest.