Suits me a fixed or variable rate mortgage? Banking is pushing loans with stable quotas or are customers who opt for this mode? Is so expensive the cost of change mode of loan for which the Government has to step in?. The first one is a classic; the other two there are fruit of a reality that is close to what happens in the rest of Europe. He tells us all the news DiarioSur
.
Not only are granted increasingly more mortgages, with annual increases of the 5,5% until April - for example, Bankia announced this week that has already granted more credits for housing than in all 2016-; but that, además, un 36,7% credits is established at fixed interest rates, According to the INE. It is a record for a market in which variable loans have come to represent more than the 90% operations which formalized in institutions. In just a year and a half, invariably type credits have multiplied by six recruitment.
And this trend seems to have no return, especially since the Ministry of finance approved reform of the mortgage Act, which include, among other issues, a bonus that will allow the changes "practically without spending and if the consumer so decides and agrees with your bank», so you can spend your mortgage at a rate fixed», as Luis de Guindos.
This administrative impulse is the final push that was missing to this modality of credits to get their definitive implementation. The standard will provide the option of changing from variable to fixed, but not the other way around, as indicated by Government sources. And it will act to reduce costs now imposed a novation, This is, the possibility of changing the financial terms of a loan. It is the commissions charged banks for such operations, as well as associated notary and registration fees.
It could be on the Commission that now apply entities by novation, It is situated, maximum, in the 1% on the capital by amortisation. The law, renewed in 2009 by the Executive of Zapatero to improve conditions that passed families in distress, restricted this rate to the 0,1% When were an extension of the time limit. Some banking sources are running another coto: of the Commission of subrogation - which is charged to change bank mortgage-, the maximum rate is of the 0,5%.
The Government also has the power to change the tariffs that goes to any mortgage changes, This is, notary and registration. However, in the case of what they charge the public notaries, from 2012 It already reduced that amount. For the innovations of mortgages applies a rate of the 0,03% the outstanding unamortized capital, with a reduction of the 70%, and a minimum amount of 90 euros. Industry sources consider that those costs are already adjusted, though it is possible that economics cannot act again.
With the legislative changes that are approved in the medium term, the mortgage have to consider to what extent offsetting them modify the terms of their loans: pay more than what now on dues paid, in Exchange for knowing that these will not change; or assume a more affordable monthly payment, Although it may be higher in the future.
Although each family circumstance presents its own nuances, Juan Ignacio Sanz, Esade Professor, explains a basic rule to follow: the amount of the monthly payment not exceeding the 30% household income, either in fixed or variable mortgage. From the banking sector recognized that variable fees are more intended for customers who know how to save and who are accustomed to domestic budget scenarios, as the les could be considered if the interests from the 0% current.
At the same time, fixed-rate mortgages would go more aimed at families with less capacity to adapt to changes in their income, and those who are not accustomed to reserve a portion of their income to savings and, por tanto, they could not deal with a euribor three or four points above what is currently (close July in the -0,15%) with a view to long-term.
Although no financial guru can anticipate today how the types of interest within a decade or two will be moved, Yes you can take as a reference to the historical average of the euribor, for a scenario of inflation of the 2% yearly as the one who seeks the European Central Bank (ECB), is of the 3%. Starting from there, each family can perform their own calculations about how could evolve their current monthly mortgage, and the more or less adverse scenarios which should address.
The dilemma that faced many citizens when choosing mortgage is running virtually settled with a commercial policy of these products to choose the mixed or fixed fees. Until the last month of April, the average initial type of fixed mortgages was on the 3,37%; and the variables, in the 3,17%, According to the INE. I mean, almost the same interest in one product that in other, knowing that the first shall be the rate for life, and in the second, that is the minimum, with the current euribor in negative.
This similarity is due to much of variable mortgages that are hired this year to apply a differential that usually starting from the percentage point (100 basic points) Most reference index. Pero, además, for the first year of life of the credit, and even for the second and some subsequent, banks already required a stable guy who ruled for several months, whose data raises the whole of the initial interest of those mortgages, Thus discourages its acquisition.
For banks, the momentum of the fixed form means «coverage» that guarantees the payment of a minimum interest at a time in which the types are found in minimum. Pero, in the long run, It doesn't involve them strictly greater - or lesser- its net interest income gain, Remember industry sources.
In any case, banks «must submit to customer interest rate hedges alternatives», recalls Juan Ignacio Sanz. Thus establishes it a decree of the year 2003, in that indicated that when a citizen ask for a credit to equity, the Bank must offer you the option of fixed mode, or any similar coverage, including it in the binding offers and relevant information documents.