The cheapest mortgages of April 2024

All financial entities offer mortgages to acquire properties: as we know, these are loans that have the peculiarity that they establish the property itself as collateral, that is, in a situation of non-payment, the bank could keep the home.. So the first thing we must be very clear about is that we can afford the mortgage and not go into debt beyond our means; Acting realistically is the best way to avoid disappointment in the medium term.

When making comparisons, the first thing we look at is the interest, because it is the rate that directly indicates how expensive or cheap the loan is.. But it is advisable to spin a little more finely: we must also analyze what links each mortgage requires of us.. It is common that financial institutions, in order to reduce this interest rate, require us to contract complementary products, such as direct debit of payroll and other receipts, credit cards with a minimum consumption, life or home insurance, and that we invest certain amounts in pension or investment funds…

It is common, and we can also benefit from all these products, but let's keep it in mind when making our calculations.

What types of mortgages exist?

We have always distinguished between fixed rate mortgages and variable rate mortgages. The first ones always maintain the same interest, without variations, so that the installment is the same from the first installment until we finish repaying the loan.. The variable rate ones are referenced to an index accepted by the market – in Spain, the most common is the Euribor -, and a differential is applied, which we could say is the profit of the financial institution.. In this case, if rates rise they will revise our fees upwards and we will pay more; and if rates go down, the opposite will happen, and we will pay less. So they are a double edged sword.. So we have to be attentive to these fluctuations and the effect they may have on our family economy.

The fixed mortgage is for those who do not want to risk anything and prefers to know what to expect, while the variable mortgage is for those who choose to take advantage of moments of low rates, but know that if those rates rise too much, they could find themselves in trouble.

However, in recent years an intermediate model has emerged: mixed mortgages.

The instability we have experienced has made many people afraid of the rate hike, but they trust that in a reasonable period of time, everything will return to normal.. So a mixed mortgage establishes a fixed term for a few years – which are usually 5, 10 or 15 – and then returns to the variable format. It is a way to ensure peace of mind for a season.

What are the cheapest mortgages in April 2024?

Let's take a look at how things are going this April 2024. In the case of fixed rate mortgages, the cheapest this month is the Fixed Rate Bonus Mortgage from Banco Sabadell (2.75%).

However, we must take into account the links that we have already talked about. This mortgage starts at an interest rate of 3.75%, but you can get up to one bonus point by meeting the following conditions: domiciliate your payroll or pension (bonus of 0.40 points); take out home insurance (0.10 points); take out life insurance (0.40 points); and take out payment protection insurance (0.10 points)

Below we detail the most interesting mortgages that exist on the market at the moment.. We classify them into three groups: fixed, mixed and variable.

The five best fixed mortgages of April 2024

The five best mixed mortgages of April 2024

In the case of mixed ones, the cheapest is that of Ibercaja (from 2.25% fixed for the first five years and then it goes to Euribor + 0.65).

The five best variable mortgages of April 2024

In the case of variables, the cheapest is the Real Madrid Variable Mortgage from Unicaja (Euribor + 0.45). But in this case, links are also necessary, such as direct debiting a payroll for an amount greater than 3,000 euros, taking out home insurance and life insurance, taking out a credit card, investing in funds or providing an energy efficiency certificate of housing with A rating.

Source of best fixed mortgages: Kelisto.es with data from the websites of financial entities (analysis prepared on 04/01/2024). The table shows the five fixed mortgages with the lowest interest for a term of up to 25 years. This term is taken as a reference because it is the one that best adapts to the average term for which mortgages are signed in Spain, according to the latest data available from the INE.. In the event of a tie, priority will be given to the offers with better conditions with respect to several criteria: the opening commission; the maximum percentage of the appraised value that allows financing.; the commission for partial and/or total early repayment; the number of products/services that need to be contracted to obtain the maximum bonus; the difference between the subsidized interest and the unsubsidized interest (the smaller the difference, the better). The non-availability of information always penalizes an offer compared to another for which its entity does show data in this regard.. If an entity does not have an offer for the chosen term, the next tranche for which it did have an offer has been taken into account.. This ranking only includes information on mortgages for any type of home, so the so-called “green mortgages” (which reward offers for homes with an A energy rating with a lower interest rate) are excluded.

Source of best mixed mortgages: Kelisto.es with data from the websites of financial entities (analysis prepared on 04/02/2024). The offers are ordered by the following criteria: 1) Lowest fixed interest; 2) Lower variable interest; 3) Lower opening commission; 4) The highest percentage of the house price that allows you to obtain; 5) Lower cost for advance commission; 6) Products required to obtain the maximum bonus. This ranking: 1) only includes mortgage information for any type of home, so the so-called “green mortgages” (which reward offers for homes with an “A” energy rating with a lower interest rate) are excluded and 2) only shows offers from entities with a presence in more than half of the Autonomous Communities or that allow the contracting of their products online.

Source of best variable mortgages: Kelisto.es with data from the websites of financial entities (analysis prepared on 04/02/2024). The offers are ordered by the following criteria: 1) Lowest fixed interest; 2) Lower variable interest; 3) Lower opening commission; 4) The highest percentage of the house price that allows you to obtain; 5) Lower cost for advance commission; 6) Products required to obtain the maximum bonus. This ranking: 1) only includes information on mortgages for any type of home, so the so-called “green mortgages” (which reward offers for homes with an “A” energy rating with a lower interest rate) are excluded and 2) only shows offers from entities with a presence in more than half of the Autonomous Communities or that allow the contracting of their products online.