Therefore, it is a good time to switch from a variable rate mortgage to a fixed rate one. Safe Rises in Euribor. According to the financial comparator HelpMyCash.com, all the customers associated with this reference can this operationBut there is one group that could be particularly profitable: those who contracted out their loans between 2011 and 2015.
interest in variables
convertible mortgage interest is Total Of two components: the value of Euribor and a certain percentage called the differential. Therefore, if this index goes up, installments of these products become more expensive as soon as their interest rate is updated, which is usually once a year or semester.
According to HelpMyCash, the spread for most convertible mortgages contracted between 2011 and 2015 is between 1.50% and 2%. On loans signed outside this period, on the other hand, the rates are much higher. lower: Euribor plus 0.5% before 2011 and around Euribor plus 1% since 2016.
It is possible to convert from a variable rate mortgage to a fixed rate, either behavior entity (innovation) or with changing banks (establishment).
Innovation has a contract a new mortgage With a different bank and use the borrowed funds to pay off the current loan.
option is too expensiveSince you have to pay the appraisal (which is about 300 euros), the commission for the early amortization of the current credit and the expenses associated with its cancellation (about 1,000 euros).
Creditor settlement is the cheapest option to replace a mortgage because it involves transfer mortgage To modify its interest or its tenure from one bank to another.
On this occasion it is necessary to pay Evaluation of the house so that the new bank knows the real value of the property, in addition to the subrogation commission levied by the bank on which it has been abandoned, the cost of which usually ranges from 0 to 2%. imported Earrings.
Why you should convert your mortgage to a fixed rate