Kutxabank removes the fixed mortgage from the window. The Basque group, with this decision, has become the first Spanish bank to hide this product to promote the sale of variable mortgages before . However, sources close to the entity assure this newspaper that despite removing this type of loan from the shop window and under Kutxabank’s objective of making “a tailor-made suit” for each client, this product continues to exist in the branches for those who sue it along with mixed-rate mortgages.
Currently, Kutxabank only maintains the variable mortgage in its window, for which it offers at its lowest price (with discounts) a Euribor plus differential of 0.79% the first year and, from the second, 0.64 %. The variable APR remains at 2.14%.
These latest loans, the mixed type, have been gaining prominence in recent months among users who are fleeing fixed-line mortgages, since the sector has raised interest rates to discourage their sale, and they fear the variables in the face of the escalation that is having the Euribor. In fact, he faced his greatest demand.
Since the beginning of last June, mortgage experts, especially intermediaries of this type of credit and companies dedicated to the reunification of loans, have warned that the sale of fixed-rate mortgages by some Spanish entities will soon come to an end. .
first warnings
Agencia Negociadora, a fintech from the Reacciona Group dedicated to mortgage brokerage, published at the beginning of July the mortgage outlook for the second half of the year and then indicated that banks will stop marketing fixed-line real estate loans at the end of this year. The first step will be, as they pointed out, to remove them from the shop window (as Kutxabank has already done), then, and even if they continue in the catalogue, they will stop being sold in branches in a bid for variables.
“In the next six months we will witness a gradual decline in the subscription of mortgages at fixed rates as their price increases, which the Negotiating Agency expects to reach 5%, a rate from which they will cease to be competitive, so they will go losing steam in favor of mixed and variable rates. And not only because of its price, but also because the closer the Euribor is to its ceiling, the greater will be the expectation of future drops in variable rate installments,” the company assured.
Likewise, the mortgage broker Gibobs also points to the same scenario: the end of fixed mortgages. “Entities with which we collaborate have informed us that, in the month of July, their mortgages offered at a fixed rate will become more expensive again and they will not even offer this product to their potential clients,” they assert.
user demand
Despite the fact that all forecasts point to lower demand and sales of fixed-line mortgages, for the moment this type of product continues to be the most demanded by customers, despite the fact that the average interest rate offered by banks has grown more than one percentage point in recent months. According to the latest data published by the National Institute of Statistics (INE), at the end of May, 72.8% of the mortgages that were constituted in Spain were fixed, however, when they were 75.3%.
The Euribor reached 1.344% this Monday, returning to set another new record not seen since April 2012, compared to -0.501% in which it was in December.
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