The Euribor closed 2021 with a value of -0.502%; the second lowest in its history. Therefore, it may be a good time to take out variable rate mortgage loans, since their interest is very low when calculated with this benchmark. According to the financial comparator HelpMyCash.com, the best variable mortgages to take advantage of the Euribor negatively are those of COINC, EVO Banco and Openbank.
1. The Variable Mortgage of COINC
The COINC Variable Mortgage It is the cheapest within this modality. For starters, it has one of the lowest interest rates on the market: 1.89% fixed the first year and Euribor plus 0.89% for the following. And unlike other mortgages, these guys They are not conditioned to the contracting of other products of the entity (such as insurance, for example), which considerably reduces its price.
COINC, which is a Bankinter online brand, It also does not charge fees for the opening of the loan or for making payments in advance (early amortization). With your variable mortgage you can finance up to 80% of the home purchase (60% if a second home is purchased), with a maximum repayment term of 30 years.
2. The Smart Mortgage of EVO Banco
According to HelpMyCash, the Smart Mortgage from EVO Banco It is the second cheapest at a variable rate. Your interest, Euribor plus 1.85% the first year and Euribor plus 0.83% the following, it is lower than the one offered by COINC. However, it costs more money in the long run, because to get those guys you have to domicile the income (a minimum of 600 euros per month) and take out home and life insurance Of the entity.
EVO Banco is a virtual entity that also belongs to Bankinter. Like COINC, It does not charge commissions for opening or early repayment. Your mortgage loan allows you to finance up to 80% of the purchase of a habitual home, to be repaid within a maximum period of 30 years.
3. La Hipoteca Open Variable de Openbank
It is top 3 closes it Hipoteca Open Variable de Openbank, an online entity of Banco Santander. It has an interest of 1.95% fixed the first year and Euribor plus 0.95% the following, what is achieved if recurring income is domiciled (at least 900 euros per month) and home insurance is contracted with the bank.
Openbank does not apply commissions for opening or for partial early repayment, but if the entire mortgage is paid in advance (full early amortization), it does charge a compensation of 0.25% (0% if more than three years have passed since the mortgage was signed). With your credit you can finance up to 80% of the purchase of a habitual home or up to 70% of the acquisition of a second residence, with a maximum term of 30 and 25 years, respectively.
Until when will the Euribor remain below 0%?
According to most finance experts, the Euribor will continue to trade negative for several more years. For example, from the Bankinter Analysis Department they forecast that its average value will be -0.30% at the end of 2022 and -0.20% when the end of 2023.
Contracting a variable mortgage, therefore, ensures that you pay low installments in the short term. In the long run, however, it is difficult to predict how the Euribor will evolve. Therefore, before signing one of these products, HelpMyCash advises calculate whether the monthly payments might be paid in case this index rises.
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