Choosing the variable mortgage that best suits our needs takes time. No one is willing to pay more to have a home and so that this does not happen it is essential to search, compare and obtain all the accurate information to be able to find the most appropriate mortgage loan.
Factors to consider when choosing a variable mortgage
Although the number of fixed-rate mortgages has increased in recent months, variable-rate mortgages are still very attractive for a large part of the population. Especially since the Euribor (reference index) is still at historical lows. In December 2021 it stood at 0.502%.
Experts say that this index can rise at any time, however, the European Central Bank ensures that, for the moment, there will be no changes in its policy of low rates.
But in addition to the Euribor there are other factors that you should take into account before choosing a variable mortgage.
Linked products such as home insurance, pension plans, cards, etc. Banks usually offer them in exchange for some kind of bonus. Keep in mind that you cannot be forced to hire any of these products when granting a mortgage.
Commissions, whether opening or amortization. Of course, the best variable mortgages are those in which the bank does not charge you any. Remember that these can significantly increase the amount of the loan you ask for.
Maximum percentage of financing. That is, the maximum percentage that the bank will offer you on the appraised value of the home. Most banks offer a maximum of 70 to 80% appraised value. But if your economic profile is good, that is, if you have high incomes and a stable job, it is possible to negotiate with entities 90% and even 100%.
Repayment term. This will depend largely on your age and your economic profile. The longer this term is, the less monthly fee you will end up paying.
Initial fixed interest. It is generally applied during the first year and is agreed with the bank during signing. Ideally, it should not exceed 2%.
Variable mortgages with better market advantages
In January, banks launched new products such as Ing’s Prime Mortgage, Bankinter’s Young Mortgage or Unicaja’s.
Of all the current offer we have chosen three others:
COINC Variable Mortgage.
- First year interest 1.89%. The rest Euribor + 0.89%, with annual review.
- No commissions.
- No linked products.
- Maximum repayment term is 30 years.
- The maximum funding rate is 80%.
Myinvestor Mortgage Without Backpack
- First year interest 2.49%. The rest Euribor + 0.89%, with annual review.
- No commissions.
- No linked products.
- Maximum repayment term is 30 years.
- The maximum funding rate is 70%.
Openbank Open Variable Mortgage
- First year interest 1.95%. The rest Euribor + 0.95%, with annual review.
- With total amortization fee.
- As long as you domicile the income and hire home insurance.
- Maximum repayment term is 30 years.
- The maximum funding rate is 80%.