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SymbolicBlogNoticiasFixed mortgages dodge the covid and prepare to sign a new record year

Fixed mortgages dodge the covid and prepare to sign a new record year

21 Dec
Symbolic Monday December 21st, 2020 0

Fixed mortgages prepare the ground to try to close another record, despite the upheaval that the COVID-19 crisis has caused for the housing market.

According to the latest data from the INE, referring to the month of September, in the first nine months of the year more than 119,400 fixed-rate mortgages have been formalized. To get an idea, between January and September alone, more than in all of 2017 and twice as many as in 2016 were signed, and they have managed to represent half of the new monthly operations.

In fact, in 2020 they have already achieved two records. In March, at the outbreak of the coronavirus pandemic, they set highs by accounting for 53% of the mortgages that were registered in the Property Registries, while in the first half of the year, hiring reached its highest level.

And it might not be the only one. The objective to beat is to try to close the year above the 147,552 fixed mortgages that were sealed during 2019, the highest figure reached to date and which is 28,118 units higher than the current figure. But, if we take into account that three months of statistics are missing and that on average more than 13,000 fixed mortgages are being signed, the goal seems manageable.

This new pull in fixed-rate loans not only occurs in the year of the health crisis, but also with the Euribor at historic lows. In November, the benchmark indicator for most mortgages in Spain marked its fourth consecutive record, and in December it managed to break the -0.5% level in daily rate for the first time.

Despite this, thousands of new mortgages are betting on the peace of mind that comes from knowing how much they will pay monthly for the loan from the first to the last installment. Furthermore, banks are still immersed in a war to attract new customers and are offering fixed alternatives that are cheaper than the historical Euribor average. According to the idealista / mortgage comparator, 30-year fixed loans are available on the market between 1.29% and 1.85%, while the average of the most famous indicator of variable mortgages is currently at 1.897% .

Among the entities that are offering these conditions are Evo Banco, COINC, BBVA, Kutxabank, Openbank, Bankinter, Targo Bank, Sabadell, Bankia, Liberbank and ING, which launched its fixed alternative in September.

In 2020 it has been seen how the attractiveness of the security of fixed mortgages has been added the historical minimum price at which they have reached (approaching 1% per year for the entire life of the loan), which has meant that for many families the higher initial monthly installment of the fixed mortgage versus the variable would not be a problem.

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