In recent months, Spanish banks have embarked on a new war to reduce your mortgage spreads, largely fueled by the great ability to discount native digital entities.
With everything, This race to reduce prices now has features capable of guaranteeing that the mistakes made in this market that caused so much damage in the financial crisis between 2008 and 2013 will not be repeated. In the first place, there is a solid demand for this type of loan in the mortgage market, which has shown resistance throughout the crisis and is backed by high levels of solvency, after forced savings in the months of confinement. And, above all, the great difference with respect to past wars between banks is that the discounts are focused on fixed-rate mortgages, so that their interests already register a minimum of 1.45%. The 2019 Mortgage Law encourages precisely this class of loans by considering them more reliable for banks and clients. Undoubtedly, the entities have given them a good reception since they guarantee them a minimum level of income regardless of the evolution of monetary policy in the coming years. This is an especially useful factor in the euro area, where the normalization of interest rates will still be expected despite the rise in inflation.
Now on the rise, fixed-rate loans of this class offer more collateral to both banks and their clients.
For its part, Clients value the advantage of protecting themselves from changes in the price of money in a loan that will last for such a long time. In addition, consumers see how wrong the predictions that fixed rates would make their mortgages more expensive. On the contrary, they make them cheaper without assuming more risks.