Eight out of ten Spaniards prefer fixed mortgages against the rise in rates

Homes under construction in a neighborhood of Madrid. / efe

The banking strategy, on the other hand, is now focused on improving the attractiveness of variable loans to take advantage of the rise in the Euribor, according to a survey by Pisos.com

C. A. Madrid

Wednesday, May 11, 2022, 1:10 p.m.

In recent years, they have been the star of the banking showcase and the preferred option of home buyers in an environment of interest rates at historical lows. Fixed-rate mortgages already account for nearly 74% of new constitutions, according to the latest data from the INE at the end of February, compared to 26.2% variables. And the preference of future owners remains in the face of the rebound in the Euribor that placed the indicator positive in April for the first time since 2016.

Against this background, 81.7% of Spaniards acknowledge that, if they had to take out a mortgage today, they would bet on a fixed-rate mortgage rather than a variable-rate one, according to a survey by the real estate portal Pisos.com . “This new survey highlights the change that we have been experiencing in recent years, consolidating the clear ‘sorpasso’ of fixed mortgages and the loss of ground of variables”, explains Ferran Font, Director of Studies and spokesperson for piso.com .

This situation contrasts with the increase in cost that some banks are anticipating in their fixed-rate mortgages, in order to make the variables more attractive and transfer customers to this type of loan to take advantage of the rise in the Euribor.

According to the Pisos.com survey, one of the reasons why buyers opt for the fixed rate is the lack of facilities they find in banks when it comes to granting mortgages. “In our survey, this disconnection is reflected, since 81.1% of Spaniards consider that the current financing conditions of the banks are too rigid for them”, reveals Font.

When contracting a mortgage, one of the aspects that causes the most rejection among users is the need to present a guarantee. In this case, the results of the survey are clear: 7 out of 10 people (74.4%) would reject a mortgage if a guarantee was required.

“Another trend that we have detected as a result of the data collected and that confirms this need for banking flexibility is the demand for 100% mortgages. According to our survey, up to 69.2% of Spaniards ask for the return of these products, focused on financing the total appraisal value, which would reduce previous savings”, Font concludes.