What is the right time to change from variable

The fact that you once chose to apply for a fixed mortgage does not chain you to that interest rate for the entire life of the loan. It can be changed, and there are circumstances in which, in fact, it is advisable to do so. Today we tell you what is the right time to change from a variable to a fixed mortgage and how to make the change. Find the best mortgage without mistakes Going from bank to bank is a thing of the past. GET INFORMED FOR FREE Best time to change from variable to fixed mortgage As you know, the main feature of variable mortgages is that they adjust their interest rate to the behavior of a reference index, generally the Euribor. Traditionally, in Spain they have been the most common mortgages because, in times of economic stability , the Euribor rate can even be negative and they end up being more profitable than fixed ones. Simply knowing this, what is the right time to change from a variable to a fixed mortgage ? When the interest rate is high. That is, when a variable mortgage involves paying more interest than a fixed one. However, don’t think that fixed interest rates are unaffected. The truth is that, when the Euribor rises, the interest rate on fixed mortgages, as a collateral effect, also rises. Therefore, it is best to use a mortgage plus expenses simulator to ensure that the change is worth it. Recommended reading: All about the elimination of early repayment fees

a good time to change from the fixed rate to the variable rate

In the Euribor began a tremendous rise that has continued until breaking the maximums recorded in the crisis. This has meant that those taking out a variable mortgage have suffered a considerable increase in their monthly payments. The forecast is that, in the last third of the year, the Euribor will stabilize , but that it will not really begin to fall until at least . Currently, therefore, it is more interesting than ever to change a variable mortgage to a fixed one . According to the latest data from the INE on mortgages , from May, in this month 62% of the mortgages established were at fixed interest, and 36.4% of the changes in conditions were changes in interest rates. Those who switched to the fixed rate, on average, reduced interest by 0.3 points. In addition, until , the change from variable to fixed mortgage is free. Along with the cancellation of commissions for early amortization of the mortgage , this is a measure approved by the Government to help alleviate the effects of the triggered Euribor.

What is the best way to change from a variable to a fixed mortgage?

There are three ways to change a fixed interest rate for a variable rate: Surrogacy . It consists of transferring your mortgage to a different bank that offers you better conditions. Novation . Staying with your bank, renegotiate the terms of your loan. One of the aspects you can change is the interest rate. Cancellation . The third option is to cancel your loan, compare mortgages and take out a new one. The cheapest and simplest option to improve your mortgage is subrogation. However, as Housfy Hipotecas spokesperson David Espiago comments, cancellation is the form that is being used the most, as it allows you to reconfigure your mortgage in depth. Recommended reading: Euribor in what is the forecast? Improve your mortgage with our experts In times of difficulty, it is always best to turn to the experts. The mortgage intermediaries at Housfy Hipotecas have plenty of experience negotiating with banks. They will offer you a free feasibility analysis, and will answer all your questions about how to successfully pay your mortgage in such difficult times.