Banking strategy, on the other hand, is now focused on improving the attractiveness of variable loans to take advantage of the rise in the Euribor, according to a study by Pisos.com.
In recent years, they have been the star of the banking showcase and the preferred option for home buyers in an environment of historically low interest rates. Fixed income mortgages already account for nearly 74% of new constitutions, according to the latest INE data at the end of February, compared to 26.2% variables. And the preference of prospective owners remains despite the rebound in the Euribor which placed the indicator positive in April for the first time since 2016.
Against this background, 81.7% of Spaniards admit that if they had to take out a mortgage today, they would bet on a fixed-rate mortgage rather than a floating-rate mortgage, according to a survey by real estate portal Pisos.com. “This new survey highlights the change we’ve gone through in recent years, consolidating the apparent ‘sorpasso’ of fixed mortgages and the loss of ground in variables,” explains Ferran Font, director of studies and spokesperson for piso.com.
This situation contrasts with the cost increase that some banks expect in their fixed rate mortgages, to make the variables more attractive and shift customers to this type of loan to take advantage of the rise in the Euribor.
According to Pisos.com’s research, one of the reasons buyers choose the fixed rate is the lack of facilities they find with banks when it comes to providing mortgages. “Our research reflects this decoupling, as 81.1% of Spaniards find the banks’ current financing conditions too rigid for them,” Font reveals.
When taking out a mortgage, one of the aspects that causes the most rejections among users is the presentation of a guarantee. In this case, the results of the survey are clear: 7 out of 10 people (74.4%) would reject a mortgage if a suretyship were required.
“Another trend that we have detected as a result of the data collected and which confirms this need for banking flexibility is the demand for 100% mortgages. According to our research, up to 69.2% of Spaniards request the return of these products, aimed at financing the total appraised value, which would reduce previous savings,” concludes Font.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
