“It is advisable to request the loan as soon as possible”

They say that everything has a beginning and an end. And the mortgage market, like life, also experiences phases of ups and downs depending on the behavior of interest rates. Because In times when interest rates are low, mortgage taking out skyrockets; but when rates increase, firms decrease.

In the year 2022, the European Central Bank (ECB) An aggressive cycle of increases began to control inflation and interest rates went from 0% to 4.5% in 2023. In parallel, the euriborthe reference index for the vast majority of variable mortgages, very sensitive to the decisions of the ECB, experienced increases that made mortgage loans more expensive.

But when prices began to moderate in the eurozone, the banking regulator began a decrease in the official reference rate for deposits – the one that conditions monetary policy – until it reached the current 2%. This decision benefited potential clients, since the banks made mortgages significantly cheaper.

However, the situation has changed in this last part of the year. Specifically, since last August the Euribor has not stopped rising, going from 2.079 in July to 2.218, the provisional average for the month of November. According to financial comparator analysts HelpMyCash.combanks have taken good note of this upward trend and Mortgage loans have become more expensive again after more than a year and a half of reductions.

“The European Central Bank considers that its rates have reached a balance point that allows it to keep inflation under control and boost the eurozone economy,” he says. Michael Rieramortgage analyst of the comparator, who explains that the vast majority of forecasts indicate that they will not go down again during the remainder of the year.

The new scenario affects both the new mortgages sold by banks and those that have already been signed. “In the case of the first, such as The entities no longer foresee more cuts of rates, they have no incentive to lower their mortgage offers. And some, in fact, They start to increase their interest to earn some margin; especially those that have a significant market share,” the company points out.

Thus, according to HelpMyCash, “at least seven banks have increased the interest on the mortgage loans they have on offer from mid-summer until now: Banco Santander, BBVA, Bankinter, COINC, Cajasiete, Unicaja and ING; the last two twice.” And in all cases, “the biggest increases have occurred in the fixed mortgages of these entities”.

Regarding mortgages already signed, The change in trend affects only those of variable type, for which the fees to pay they start to rise again.

“Banks still offer competitive fixed interest rates”

Faced with this new scenario, Riera recommends that a person considering applying for a mortgage act as soon as possible: “It is advisable to process the application as soon as possiblesince if you wait more than the account, it is more than likely that the bank will offer you a higher interest rate.

Likewise, it is convenient “ask for a mortgage from several banks at the same time”. “In this way, the applicant will be able to compare several options and it will be easier for them to negotiate better conditions: a lower interest rate, fewer associated products or commissions… In this sense, it is advisable to present the best offer obtained to the rest of the entities and haggle until you get a good counteroffer.

For those who have a variable loan, this can be a good time to switch to the fixed rate,. “Banks still offer competitive fixed interests; even below the Euribor,” explains Riera. Of course, as in the previous case, it is convenient “complete the change as soon as possible, either through an agreement with the bank itself or by transferring the loan to another entity”.

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