Wednesday, October 20

What are the best variable mortgages of August 2021?

August has been accompanied by sales and new mortgage products.

August has been accompanied by sales and new mortgage products.

August is not usually one of the traditionally most turbulent months in terms of recruiting mortgages In spite of this, this year the bank has not wasted a bullet in its hunt for the mortgage customer.

Unlike other years, August has been accompanied with sales and new products in its offer, especially in variable mortgages.

The latest fall in the Euribor (-0.49%) approaching historical lows (-0.5%) has made banks rethink their strategy. Until now, the usual thing was to see fixed mortgages outshine the best deals. However, the trajectory of the mortgage index in the last year has reinforced the idea that we will see the indicator in negative territory for a while yet and has encouraged buyers to continue betting on the variable product.

Despite this, “great variations are not expected nor that the Euribor reaches levels below -0.5%”, according to Simone Colombelli, director of Mortgages at iAhorro.

The news that land in the mortgage market

The last to join variable mortgages has been Sabadell Bank. Until now I did not have a mortgage loan in this modality and, at this moment, it offers a TIN from Euribor + 0.99% and 1.75% TIN the first year fulfilling conditions. In addition, it has a payback period of up to 30 years.

Another novelty of the summer has been the ING Variable Mortgage. After the general reduction that the orange bank has made to all its mortgage products this month, its variable loan is left with a TIN of Euribor + 0.89% and a variable APR of 2.65% when directing the payroll and taking out home insurance and life offered by the entity. The review of the quota is semiannual and during the first year it will be fixed with a TIN of 1.99%.

The discounted offer of the BBVA Variable Mortgage it continues to maintain interesting conditions. By direct debiting a salary of at least 600 euros per month and contracting multi-risk home insurance and loan repayment insurance with the entity, it is possible to contract BBVA’s variable mortgage from Euribor + 0.99% and 1.40% APR.

The Banco Mediolanum’s Freedom Mortgage has a TIN of Euribor + 1.05% and finances up to 80% of the sale or appraisal value of the home. During the first year the fee will be fixed, with a TIN of 1.99%, and it will only be necessary to open a bank account in the entity that will be free during the period of time that the mortgage is in force.

As we can see, the possibilities to reference the mortgage to the Euribor this month are multiple and, predictably, the thing does not end here. “Good months await us in terms of mortgage firms, the banks are expected to place great emphasis on this type of product in the remainder of the year,” explains Simone Colombelli.

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