Fixed interest mortgages: how to get good conditions?

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A few years ago, few people took out fixed-interest mortgages , that was because they had much worse conditions than variable ones. But, currently, this has changed and banks offer better options for taking out a fixed rate mortgage. In today's blog we will see all the keys to fixed mortgages so that you can get the best conditions.


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How do fixed interest mortgages work?
A fixed mortgage differs from a variable mortgage due to the type of interest it has. In the first case, the interests are fixed and will be more or less high depending on the repayment period of the mortgage loan. Throughout the life of the mortgage, the Chinese Overseas America Number Data client will be paying the same amount in installments without variations.

On the other hand, in a variable mortgage, the interests are referenced to an external index, the most common is the Euribor. Depending on the value it has when the review is done every 6 months or a year, your fee will be higher or lower. Currently, the Euribor is at negative values, so the mortgage payments will be lower.

Normally, the APR of a mortgage with fixed interests is usually much higher than the variable ones, which is why for many years people have opted for variable mortgages. But, currently, the conditions for fixed mortgages have improved many times and you can find interest rates of 1.35% for mortgages with terms of 15 years and 1.55% for 30 years. As we have seen before and now clearly with this example, interest is always subject to the amortization period.


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fixed interest mortgages

Keys to fixed interest mortgages
Before taking out a fixed mortgage, you have to take into account all the points and information.

Amortization period
The most common thing is that the mortgage term is shorter than with variable mortgages , but now it is more flexible. Previously, the maximum term was 20 years, although on very specific occasions terms of up to 25 years could be achieved. This made them more expensive mortgages because the installments were much higher than the variable mortgages, which allowed repayment periods of more than 30 years.



Currently we can get fixed mortgages with terms of 30 years and, on the other hand, variable-rate mortgages can reach up to 40 years. But these very favorable conditions, which allow you to pay a lower amount in installments, can only be achieved if you negotiate well with the banking entities and knowing what each one offers. That is why it is always advisable to have mortgage experts to help you obtain financing for your home.

And above all, always remember that even if you pay less in monthly payment because the term is longer, you will be paying much more in interest at the end of the life of the loan. The fewer years you pay the bank loan, the less you will pay at the end of the mortgage.

Interest may vary
Don't worry, because the interests of a fixed mortgage do not vary and in fact, it is important that we get good conditions with the interests because the ones you contract will be the ones you will pay throughout the life of the loan. But there are two exceptions:

If you do a mortgage novation . If you want to modify your mortgage with the bank, it is possible that an agreement will be reached with the interest applied, so in this case there would be a variation in your payment. But once signed, it would be established as it is until the end of the loan.
Breach of bonus conditions . Sometimes, getting better conditions goes hand in hand with accepting certain product links with the bank (domiciliary payroll, pension plans, accounts...). If you fail to comply with this part of the contract, the bank may increase your interest, since the decrease in interest was due to the links.