This 2023 will be a year of challenges in the Spanish real estate market , since the rise in the Euribor (which exceeded 3%) has set off alarm bells among mortgage customers, who are looking for a credit solution to face the rise in interest rates .
Given this scenario, requesting a mixed mortgage is a great alternative that allows beneficiaries to maintain a fixed interest rate for a while and even repay the principal, before the variable interest tranche changes.
If you are interested in this credit product, then you will see the best mixed mortgages whose benefits may be appropriate to your financial situation.
The best mixed mortgages 2023
This is the selection of the mixed mortgages with the best benefits and the most requested in the financial market in 2023:
Openbank mixed mortgage
One of the most requested mixed mortgages is the Openbank , since it offers a fixed interest rate for the first 10 years at a rate of 2.37%. In addition, it gives you the facility to choose between plans with or without bonuses.
If you choose to comply with the bonus conditions established by the entity, the interest rate can range from 2.37% and a variable Equivalent Annual Rate of 3.04%. However, without complying with the bonus, the rates rise to 3.17% and the APR to 3.34%.
Another advantage of this mortgage is that the entity assumes the appraisal of the property , provided that you sign with them and commit to maintaining the product.
EVO Banco mixed mortgage
What does this mixed mortgage include? To begin with, it is one of the most competitive in terms of benefits and interest rates. It offers two options to choose between 5 or 15 years with fixed interest and the rest of the term with variable interest.
In each of these conditions the interest varies, as well as the APR and the Nominal Interest Rate. Therefore, in case you want a fixed term of 5 years, the fixed interest will be 2.15% and for the term of 15 years it will be 2.55%.
In any case, if you amortize capital in the first years, you will achieve significant savings in terms of the TAE and the TIN in the variable term of the mortgage.
Bankinter’s mixed mortgage
Bankinter has one of the best mixed mortgages on the market, since it offers three fixed tranches in which you can choose between 10, 15 or 20 years of fixed interest. The fixed rate for the first 10 years will be 2.80%.
One of its cons is that you must pay an opening fee of 500 euros and hire other products from the entity, such as life and home insurance.
Ibercaja mixed mortgage
The advantages of the Ibercaja mixed mortgage is that it offers fixed terms of 5 or 10 years , depending on what suits you best. This means that it includes a subsidized APR of 4.35% and a maximum financing of 80%.
Of course, with this mixed mortgage the variable term is longer than that offered by other entities, which makes it a more expensive loan in the long term.
When is it good to ask for a mixed mortgage?
It is best to request a mixed mortgage when you are looking to have a combination of the benefits of a fixed-rate mortgage and a variable-rate mortgage. Therefore, some situations in which it may be beneficial to take out a mixed mortgage include:
- When you expect interest rates to rise in the future and want to lock in a fixed rate as a percentage of the mortgage.
- If you’re looking to take advantage of the low interest rates of an adjustable mortgage, but need the security of a fixed rate in case rates go up.
In addition, this credit product is very effective when you have a tight budget and can only pay a lower initial fee, but you have the option of paying off faster in the future if economic conditions allow it.
Advantages and disadvantages of mixed mortgages
Although mixed mortgages combine characteristics of fixed and variable mortgages, this product has its advantages and disadvantages, such as:
Advantages
- It offers stability in the payment of the installment during a determined period, generally at the beginning of the loan.
- Allows borrowers to take advantage of interest rate drops if they occur during the variable rate period.
- You can choose between the options of fixed terms according to your economic reality.
Disadvantages
- If interest rates rise during the variable interest period, monthly payments may also rise, making it difficult for some borrowers to make payments.
- They can be more complex to understand and compare than traditional fixed or variable mortgages.
- The first term will always be fixed and you do not have the possibility of choosing a variable one.
Which mortgage is better: mixed or variable?
The choice between a variable and a mixed mortgage will depend on your individual needs and preferences . While variable mortgages have the alternative that rates may drop over time, this is an indicator that is not stable.
On the other hand, the mixed mortgages will allow you to plan the installments during a determined fixed term so that during that time there are no surprises and you can even amortize part of the capital to reduce the payments in the variable tranche.
In general, we recommend that before opting for one type of credit or another, you consult a financial specialist or a mortgage adviser to obtain additional and more specialized guidance.
