hipoteca fija o variable
11 May, 2021

Fixed Or Variable Mortgage Which Is The Best In Spain?

We are aware that nowadays, getting a house adjusted to your own needs is quite an uphill battle. Especially when we talk about credit requirements and payments. In most cases when we want to buy a house we turn to a fixed or variable mortgage as a financing method.

But what type of mortgage is the most suitable? Fixed or variable mortgage? Fixed or variable mortgage?   We will answer this question in this post. Join us and know everything about the mortgage, its concept, and the most common types that are used today.

fixed or variable mortgage

What is a mortgage?

We have often heard the word ” Mortgage Amount “ especially in real estate transactions. A mortgage in simple terms is a loan made by a bank to a user; with the purpose that it acquires a specific property.

That loan made by the bank will have to be repaid in full, adding the respective interest. Payment will be made through the cancellation of periodic fees.

What Is The Best- Fixed Or Variable Mortgage?

Establishing the best mortgage requires establishing the conditions and payment capabilities of each client. Let’s see below the conceptualization in each one of them, so that you are the one who links the Best, Fixed or Variable Mortgage?

Variable Mortgage

This type of mortgage establishes an interest composed of a fixed spread plus a reference index. In Spain this reference index is commonly the Euribor. The interest on this type of loan will vary according to the correspondence with the mentioned index in a period of 12 months.

When we talk about a mortgage that varies, we do not refer to the fact that the installments change every month; only that there will be variation of the quota when it is reviewed every six months or every year.

Fixed Mortgage

The fixed one is preferred by the majority of the Spaniards; It establishes the payment of a monthly installment with its interests in a fixed way and during the time established by the loan from the bank.

Advantages Of The Fixed Or Variable Mortgage

  • The variation in fees is usually very low
  • Cancellation times are beneficial -in both- for customers
  • Opting for a  fixed or variable is the best option to acquire a property

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