The IS Bank of Spain (BE) notice has been issued mortgages fixed type. The IS European Central Bank (ECB) I had already been warned that the rising interest rates would have a major impact on variable rate mortgageswhich would mean a “greater financial burden”.
This is a rate hike first in eleven yearsand occurs as a result of the current state of the inflation world. Although, as stated by BCEthey are the main causes and the first influences variable mortgagesdue to the rise in euriborthe secondary effects will spill over as well as those of it fixed type.
“In Spain, there are conditions funding has begun to be less baggy in recent months and, predictably, may experience additional tension in the near future, “according to the Bank of Spain.
In this aspect, the rising interest rates both will be affected family As the companies. As explained by the present BE Director of Economics and Statistics, Ángel Gavilán«If monetary costs increase, this is usually transferred to the financing costs for households and businesses. It is inevitable that he will eventually move. ”
How much will mortgages rise in 2022
As explained by the Bank of Spainmortgages are reviewed once a year or once a quarter: «On that day, the bank takes the last published value of the euribor to calculate the interest which will be in effect until the next update.
“It simply came to our notice then euribor has increased Compared to the previous review, the interest will be higher and the mortgaged person will pay more expensive installments. Rather, if it goes down, a lower rate will apply and the monthly payments will be cheaper », they explain from the BE.
Which fixed or variable mortgage is best?
Due to the rising situation interest rates and the follow – up price increaseMore and more families are hesitating between what type of mortgage is better. Many end up choosing the fixed mortgageas It is not susceptible to fixed variations in Euribor.
However, there are also many who already have a contract variable rate mortgage. In these cases you can stay with the same contract, or there is also the possibility to change and move to a fixed rate mortgage. There are three options for doing this:
This mechanism involves a change or improvement of the mortgage conditionsis done within the bank itself. you can have client the one who asks for the bank change these conditions if you see that these have improved since you contracted the product (in this case, switch to a fixed mortgage). However, it can be as good as yours. financial entity the one that the novice offers the client as a measure to prevents him from going to another bank in which they give you the best conditions.
- mortgage subrogation
This option is change the terms of the mortgagelike novation, but with the difference that in this case it means that the client does bank change. Using this mechanism implies that the person looks first offers in other entities in which you are more interested than you are at that moment. Once you find a satisfactory one, you should notify that bank forward the existing mortgage resolution to your entity. As soon as the client asks to extend the mortgage, the banco with whom he originally had a contract 15 calendar days to match the conditions provided by the other entity.
- Mortgage cancellation
This is the last mechanism write off completely the mortgage at the bank where you have it contracted. Before you do this you should search for others offers and even order nuachan to your bank. Cancellation is usually completed either when the entity it does not offer the option of subrogation or when the client has money to repay.
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