Over the past year, banks have declared war on fixed mortgages. As the Euribor has risen so much (from negative values to more than 3%), entities are more paid to grant loans at a variable rate. And to encourage these products, banks have been worsening the conditions of their fixed mortgages for months or, directly, withdrawing this kind of offers.

In March, however, some banks buried their hatchet. During the last weeks, several entities have decided to lower their fixed mortgages (slightly), while others have relaunched the fixed-rate offers that they had withdrawn from their catalogs a few months ago.

In this article you will find the banks that have recovered the interest on the fixed mortgage. In addition, here we explain if it is a good time to hire a product of this class and if there will be more entities that will join this new trend.

Banks that have lowered their fixed mortgages in March

Let’s start with those entities that now offer a cheaper fixed mortgage. According to a market analysis carried out by HelpMyCash analysts, at least three banks have reduced interest in these products in March:

• ING: the interest rate on your Fixed Orange Mortgage has fallen from 3.55% to 3.50% for a term of up to 25 years.
• Triodos Bank: your Triodos Fixed Mortgage now has an interest rate of 4.20% for a term of up to 20 years (previously 4.34%).
• Banc Sabadell: this entity has reduced the interest on its Subsidized Fixed Mortgage from 3.60% to 3.50% over 30 years.

In March, there was only one bank that made its fixed-rate mortgage more expensive: imagine. This entity raised its interest from 2.70% to 3% for a term of up to 30 years.

Entities that have relaunched a fixed mortgage

Also, as we mentioned, some banks have returned to market fixed mortgages. They are these two:

• Cajasiete: has relaunched its Fixed Mortgage, which now has an interest from 3.50% for a maximum term of 30 years (before it was from 1.40%).
• BBVA: has relaunched its MUGEJU Fixed Mortgage, available to officials working in the judicial field. Its new interest is from 3.05% to 30 years (before it was 2.50%).

Will more banks join this strategy?

At the moment, we cannot talk about a change in trend, because there are few banks that have improved or relaunched their fixed-rate offers. In addition, the entities that have cheapened their mortgages previously offered interest above the average (around 3.50%), so it is not a revolution either.

Looking ahead, will other banks make their fixed mortgages cheaper? Everything will depend on the European Central Bank (ECB): if it continues to raise rates and the Euribor remains up, the entities will not improve these products (in fact, they will worsen their conditions). On the other hand, if the ECB stops raising rates due to the effects of the Silicon Valley Bank bankruptcy, the Euribor will moderate and we could see cheaper fixed mortgages.

Should I take out a fixed-rate mortgage?

As the future is uncertain, we can not tell you if this is a good time to take out a fixed mortgage. If the Euribor remains high for a long time, it is clear that it will pay off, but if it goes down in the short term, perhaps a variable or mixed rate loan would have been more convenient.

Our advice, therefore, is to base yourself on your risk tolerance. In case you prefer not to depend on the Euribor, opting for a fixed interest is a good idea, because this way you will always pay the same fee. Of course, the mortgage you hire must have a competitive rate so that the monthly payment is not higher than the account.

In general, we believe that a fixed interest of around 3% or less is competitive. Therefore, we advise you to look for products that meet this requirement. For example, the BBVA Fixed Mortgage can be a good option: its interest is from 2.80% in exchange for domiciling the payroll and contracting the bank’s home and life insurance.

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