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Keys to choosing a mortgage, March 2019

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Fixed-rate mortgages are undergoing a major revolution in the real estate market. This ranking of the best fixed-rate mortgages in 2019 compares the interest rates, terms and conditions offered by each bank.

Fixed-rate mortgages: Are they better than variable-rate mortgages?
Fixed-rate or variable-rate mortgages? Which is better? This is the question we constantly ask ourselves when we go out into the mortgage market. To solve it, we will see what are the advantages and disadvantages of taking out a fixed-rate mortgage during the year 2019.

Advantages of fixed-rate mortgages
You’ll know your monthly payment in advance for the life of the mortgage. You will be able to better organize your finances.
There is no risk of interest rate increases. The current low Euribor values should not lower our guard, as only 7-8 years ago it was above 4%, so when you take out a variable rate mortgage we could be scared with the Euribor. You will gain peace of mind.
Currently, fixed interest rate mortgages are around 2.5% for a term of 25 years while variable interest rate mortgages are at Euribor +0.85% in the best of cases. The difference is not excessive, so peace of mind is not paid at the price of gold.
Inconveniences of fixed rate mortgages
Euribor is negative in 2019, so variable rate mortgages are saving more than ever. In the short term, variable rate mortgages are cheaper than fixed rate mortgages.
In the case of fixed-rate mortgages, the interest rate varies with the term chosen. The longer the term, the higher the interest rate on fixed-rate mortgages. For example, a 15-year fixed mortgage has an interest rate of approximately 1.75-2% TIN. However, if you take it for 30 years, the interest rate increases to approximately 2.5% TIN. This does not happen with variable mortgages, as the term chosen does not affect the spread.
So which interest rate is better on a mortgage, the fixed rate or the variable rate? There is no clear answer or absolute truth in this matter. It depends, above all, on your personality. If you want to save in the short/medium term, you will choose a variable rate mortgage. If what you want is peace of mind and always paying the same instalment for your mortgage (a instalment with which you feel comfortable), you will choose a fixed-rate mortgage.

Better fixed-rate mortgages in 2019: the latest developments
The month of March is going to be a turning point in mortgages: Spain must adapt to European doctrine and banks must comply with the new mortgage law. All entities are making changes in interest rates, commissions or links to be competitive. These are the most notable changes:

Bankinter assumes all mortgage costs except the appraisal. This novelty, together with the recent lowering of interest rates on their mortgages, again place it as one of the most interesting options.
At last! Coinc mortgages can now be applied for with 2 holders. Excellent news for singles and couples.
Kutxabank has made a significant reduction in its rates: from 2.50% to 2.20% TIN for 25 years. This means a saving of up to 20€ per month for a standard mortgage. He has also withdrawn the opening commission from his fixed mortgage. I predict a wave of applications for this mortgage during March. Not for nothing!
BBVA assume 100% of mortgage expenses.
Bankoa has “hidden” the interest rates on its mortgages. They seem to be renewing their offer.

Best Fixed Rate Mortgages (March 2019)

Name and Entity TIN TAE Term Vinculations
Hipotecas con plazo máximo de 30 años
Fixed Mortgage Kutxabank 2,20% 2,76% 25 años High
Fixed Mortgage Open 2,30%* 2,50% 25 años Payroll
Fixed Mortgage Myinvestor 2,35% 2,54% 25 años
Fixed Mortgage Bankoa 2,25% 2,84% 25 años Average linkage
Fixed Mortgage No commissions Bankia 2,45% 2,77% 25 años Payroll + 3.000€
2,60% 2,93% 25 años Payroll
3,30% 3,64% 25 años Payroll < 1.200€
Fixed Mortgage Coinc 2,30% 2,73% 25 años
Fixed Mortgage Tranquilidad Ibercaja 2,50% 2,90% 25 años High
Fixed Mortgage Bankinter 2,30% 2,99% 25 años High
Fixed Mortgage BBVA 2,35% 3,10% 25 años Average linkage
Fixed Mortgage AHORA Liberbank 2,15% 3,34% 25 años High
Fixed Mortgage 25 years hipotecas.com Customizable Customizable 25 años
Fixed Mortgage Santander Customizable Customizable 25 años Average linkage
Fixed Mortgage MariCarmen Abanca 2,45% 3,88% 25 años High
Casafácil Fixed 25 Caixabank 3,05% 4,370% 25 años Very High
Mortgages with a maximum term of 20 years
Fixed Mortgage Myinvestor 2,20% 2,39% 20 años
Fixed Mortgage TARGOBANK 1,95% 2,56% 20 años Average linkage
Fixed Mortgage Caixabank 2,75% 4,130% 20 años Very High

*For financing of up to 50% on the lowest purchase value and appraisal.

SOURCE: RANKIA

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About The Author
Israel Huertas Salazar

Inmobiliaria en Torrox. Ofrezco un trato personalizado y una contrastada experiencia como intermediario en la compraventa de inmuebles de todo tipo, oportunidades y grandes inversiones inmobiliarias, en diversas ubicaciones, tanto en Torrox, como Nerja, Frigiliana, Torre del Mar… y gran parte del territorio andaluz. Como broker inmobiliario, colaboro en red con todas las inmobiliarias y empresas promotoras y puedo conseguir la propiedad de su interés.

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