The change in monetary policy of the European Central Bank, which this Thursday has undertaken the second reduction of interest rates, is already leaving notice in the mortgage market.
In order to revive the mortgage market, and with the new drop in the price of money and the return of the Euribor to a downward trend, several banks have begun to reduce the cost of their mortgages.
Mainly fixed-rate mortgages such as Banco Sabadell, which, according to experts, has the cheapest mortgage in September.
Banco Sabadell’s Bonified Fixed Mortgage is one of the most competitive on the market in this segment since offers an interest rate of 2.60 percent APRregardless of the return period chosen.
Fixed rate mortgages below 3%
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Of course, to be able to access this type of subsidized interest you must domiciliate your payroll or pension and take out life insurance, one for home and another for total payment protection. If these requirements are not met, the interest rate rises one point.
The fixed-rate mortgage from Banco Sabadell is accompanied by the Fixed-Rate Bonified Mortgage from Banco Santander (2.6 percent), the Fixed-Rate Mortgage from Openbank (2.72 percent APR), the Fixed-Rate Intelligent Mortgage from EVO Banco (2.9 percent) and the Fixed-Rate Mortgage from BBVA (2.9 percent).
Ibercaja, for its part, announced on Friday that the interest rate on its fixed-rate mortgage will be reduced to 2.75 percent.
If the mortgage holder is not looking for a fixed rate and is interested in investing in a mixed or variable rate mortgage, experts say that the cheapest are the Mixed Mortgage from Cajamar and the Variable Real Madrid Mortgage from Unicaja.
The HipotecON Tipo Mixto from Cajamar, at 1.79 percent APR for the first five years and Euribor+0.50 percent for the rest, is the best option if you are looking for a mixed rate.
Low mortgages for high salaries
To do this, you will need to deposit your salary for a total amount of at least 700 euros, or sign up for electronic or telephone banking, or deposit 3 basic utility bills.
In addition, the client must be a member of the entity (contracting a minimum contribution of 61 euros).
At Ibercaja, after adjusting the interest rates of its range of mortgages downwards, the rate for mixed mortgages at 5 and 10 years is set in its initial tranche at 1.75 percent and 2.20 percent, respectively, and the minimum spread applied to the Euribor in subsequent periods remains at 0.65 percent for 5-year mortgages and 0.90 percent for 10-year mortgages.
If the client is looking for a variable rate mortgage, the cheapest is the Real Madrid Variable Mortgage from Unicaja thanks to its interest rate: Euribor+0.40 percent, from the second year and a fixed interest rate of 1.99 percent during the first 12 months.
As with most mortgages on the market, to get the best conditions for this mortgage loan you will have to accept certain conditions. Specifically, you must:
Domiciliate one 3,000 euro payrolltake out home and life insurance, and a credit card. Also, maintain a position in investment funds marketed by Unicaja. And provide an energy efficiency certificate for the home with an A rating.
At Ibercaja, variable rate mortgages offer an interest rate of 1.50 percent for the first 12 months and the minimum differential to be applied to the reference index in the remaining years is 0.60 percent.
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What are the current fixed-rate mortgage options available following the European Central Bank’s monetary policy shift?
European Central Bank’s Monetary Policy Shift: How It’s Impacting the Mortgage Market
In a move to revitalize the mortgage market, the European Central Bank (ECB) has implemented its second interest rate reduction this Thursday. As a result, several banks have begun to lower the cost of their mortgages, offering more competitive rates to attract customers. This shift in monetary policy is already making waves in the mortgage market, with fixed-rate and variable-rate mortgages becoming more affordable for borrowers.
Fixed-Rate Mortgages Below 3%
One of the most competitive fixed-rate mortgages currently available is Banco Sabadell’s Bonified Fixed Mortgage, which offers an interest rate of 2.60 percent APR, regardless of the repayment period chosen. However, to access this subsidized interest rate, borrowers must meet certain conditions, such as domiciling their payroll or pension and taking out life insurance, home insurance, and total payment protection.
Other banks, such as Banco Santander, Openbank, EVO Banco, and BBVA, are also offering fixed-rate mortgages with interest rates below 3%. For example, Banco Santander’s Fixed-Rate Mortgage has an interest rate of 2.6 percent, while Openbank’s Fixed-Rate Mortgage has an interest rate of 2.72 percent APR.
Low Mortgages for High Salaries
For those with higher salaries, there are even more competitive mortgage options available. Ibercaja, for instance, has announced a reduction in the interest rate of its fixed-rate mortgage to 2.75 percent. Meanwhile, Cajamar’s HipotecON Tipo Mixto offers a mixed mortgage rate of 1.79 percent APR for the first five years and Euribor+0.50 percent for the rest.
To access these low mortgage rates, borrowers may need to meet certain conditions, such as depositing a minimum amount of money, signing up for electronic or telephone banking, or depositing utility bills. Additionally, some banks may require clients to become members of the entity or sign up for investment funds.
Variable Rate Mortgages
For those who prefer variable rate mortgages, Unicaja’s Real Madrid Variable Mortgage is currently the cheapest option, with an interest rate of Euribor+0.40 percent from the second year and a fixed interest rate of 1.99 percent during the first 12 months. However, to access this rate, borrowers must meet certain conditions, such as domiciling a 3,000 euro payroll, taking out home and life insurance, and maintaining a position in investment funds marketed by Unicaja.
Ibercaja’s variable rate mortgages also offer competitive rates, with an interest rate of 1.50 percent for the first 12 months and a minimum differential to be applied to the reference index in the remaining years of 0.60 percent.
Impact on the Mortgage Market
The ECB’s monetary policy shift is expected to have a significant impact on the mortgage market, making it more accessible and affordable for borrowers. With interest rates at historic lows, it’s an ideal time for individuals and families to consider investing in a home. Whether you’re looking for a fixed-rate or variable-rate mortgage, there are now more competitive options available than ever before.
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Keywords: European Central Bank, monetary policy, interest rates, mortgage market, fixed-rate mortgages, variable-rate mortgages, Banco Sabadell, Banco Santander, Openbank, EVO Banco, BBVA, Ibercaja, Cajamar, Unicaja, mortgage rates, home loans, financial news.
Mortgage (2.9% APR)
European Central Bank’s Monetary Policy Shift: Mortgage Market Sees Noticeable Change
The recent move by the European Central Bank to reduce interest rates has sent ripples through the mortgage market, with several banks already responding by lowering the cost of their mortgages. This shift in monetary policy is expected to revitalize the mortgage market, and borrowers are set to benefit from the resulting competition.
Fixed-Rate Mortgages Below 3%
One of the most notable developments is the emergence of fixed-rate mortgages with interest rates below 3%. Banco Sabadell’s Bonified Fixed Mortgage is currently one of the most competitive on the market, offering an interest rate of 2.60% APR regardless of the return period chosen. However, to qualify for this subsidized interest rate, borrowers must domiciliate their payroll or pension and take out life insurance, as well as home and total payment protection insurance. If these requirements are not met, the interest rate rises by one point.
Other banks are also offering competitive fixed-rate mortgages, including Banco Santander’s Fixed-Rate Bonified Mortgage (2.6% APR), Openbank’s Fixed-Rate Mortgage (2.72% APR), EVO Banco’s Fixed-Rate Intelligent Mortgage (2.9% APR), and BBVA’s Fixed-Rate Mortgage (2.9% APR). Ibercaja has also announced a reduction in its fixed-rate mortgage interest rate to 2.75%.
Low Mortgages for High Salaries
For borrowers with higher salaries, there are even more attractive mortgage options available. Cajamar’s Mixed Mortgage, for example, offers an interest rate of 1.79% APR for the first five years and Euribor+0.50% for the rest. To qualify, borrowers must deposit a minimum of €700 per month, sign up for electronic or telephone banking, or deposit three basic utility bills. Additionally, borrowers must be a member of the entity, requiring a minimum contribution of €61.
Unicaja’s Real Madrid Variable Mortgage is another option, offering an interest rate of Euribor+0.40% from the second year and a fixed interest rate of 1.99% during the first 12 months. To get the best conditions for this mortgage loan, borrowers must domiciliate a €3,000 payroll, take out home and life insurance, and a credit card, as well as maintain a position in investment funds marketed by Unicaja and provide an energy efficiency certificate for the home with an A rating.
What Are the Current Fixed-Rate Mortgage Options Available Following the European Central Bank’s Monetary Policy Shift?
The European Central Bank’s decision to reduce interest rates has opened up new opportunities for borrowers to secure competitive mortgage deals. With fixed-rate mortgages below 3% and low mortgages for high salaries, borrowers are spoiled for choice. Here are some of the current fixed-rate mortgage options available:
Banco Sabadell’s Bonified Fixed Mortgage (2.60% APR)
Banco Santander’s Fixed-Rate Bonified Mortgage (2.6% APR)
Openbank’s Fixed-Rate Mortgage (2.72% APR)
EVO Banco’s Fixed-Rate Intelligent
