Banks have begun to abandon the mortgage war, once the European Central Bank failed to reduce interest rates, and at a time when demand for loans is soaring at the peak of the housing market. BBVA raised the fixed type of its 10-year mortgage a few days ago, and now the entity has the same amount with the 25-year loan interest, from 3.57% to 3.67% TAE – the equivalent annual fee, which includes expenses –.
Specifically, BBVA applies the maximum bonus for the fixed interest type during the first six months. As for the rest of the period, the consumption graph varies depending on the contract for additional products. To get the best terms, you should stay home and take out multi-peril home insurance and loan amortization insurance.
In recent weeks, the directives of the main Spanish entities have tried to put an end to aggressive efficiency and changes have begun to be noticed. Recently, Bankinter, Santander and BBVA have revised their mortgage rates. Therefore, the battle to provide cheaper financing is over, a trend that may worsen in the following months.
BBVA’s authorized advisor, Onur Genç, stressed during the presentation of the results that the entity has not set a target to achieve in the mortgage sector in Spain and that the offers have been significantly revised. The bank is willing to stay in the background in the mortgage war, waiting for the sector’s movements and focusing on retaining its most committed clients.
According to the latest data from the European Central Bank, since September, Spain has become the second country – after Malta – to have the cheapest mortgage loans in the eurozone, at 2.7%, which is well below the European average, which is 3.32%.
Santander also tightened its 25-year fixed mortgage, increasing the rate from 3.07% to 3.27% APR, while reducing the maximum bonus to 1% (from the previous 1.10%). Hector Gresi, a member of Santander’s Council of Delegates, said at the press conference after his accounts were revealed that the entity was not competing “irrationally.” For its part, Bankinter set its 25-year fixed mortgage rate with full bonus at 3.46% APR compared to the previous 3.30%. Likewise, Coinc, Bankinter’s savings portal, raised the 25-year fixed loan from 2.93% to 3.09% including bonds. Gloria Ortiz, deputy advisor to Bankenter, noted that 30-year mortgages are being sold in Spain for less than the money price. Since September, Unicaja and INE mortgages have also increased.
iAhorro spokeswoman, Laura Martinez, points out that in comparison you see how some entities are making adjustments to the prices of their mortgage offers. “What happened months ago was just pagada after pagada, now that’s it. There are few movements, and they are not positive, although it is still possible to achieve very attractive terms in both fixed and mixed mortgages for citizens, depending on their profile.” On the other hand, the experts of the comparative site HelpMyCash.com confirm that “the most notable thing that happened in the past few months was the European Central Bank freezing its types and reinstating the Euribor. The reaction of the Spanish banks was to end the price war that is being waged in the mortgage market between the end of 2023 and the beginning of 2025.”
The euro rate, the main indicator for calculating variable mortgages in Spain, is resounding and has remained at levels seen since March (2.216% at daily prices). The ECB is not expected to engage closely with these types of interests. Regarding the offer of mortgages, Carlos Lopez, responsible for Euribor.com.es, believes that “if reporting on the types is consolidated at the appropriate level and expectations of lower inflation gain credibility, we will see the TIN being measured more in broad areas. For variants, the key will remain the fixed spread and the ability to absorb its revisions while Euribor finds its plateau.”
After the increases experienced by some fixed mortgages on the market, the currently most advantageous offers, corresponding to bonus conditions, are: Hipoteca Fija Open de Openbank with an interest of 2.98% on a daily basis, and Hipotica Vamos de Ibercaja with an interest of 3.10% on a daily basis.
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