Pocket guide to choosing between a fixed, variable or mixed mortgage

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Under normal conditions, choose what the mortgage interest should be that will be contracted to buy a home (fixed, variable or mixed) it’s not simple. But making a good decision is especially complicated in a context like the current onewith rising rates, the Euribor at more than 4%, inflation that is not left behind and an increasingly unstable geopolitical situation due to the war conflicts in Ukraine and the Middle East.

According to the financial comparator HelpMyCash.com, there is no better option than another: the client will not know if they have made a good decision until they finish paying their mortgage loan, given that everything will depend on the unpredictable evolution of the Euribor. For this reason, its analysts consider that is more suitable choose a fixed, variable or mixed mortgage depending on the profile of the applicant himself.

A fixed mortgage, for example, It is better suited to a client with a rather cautious profile. As their name indicates, these mortgage loans have a fixed interest, that is, it remains unchanged throughout the repayment period. Therefore, this modality allows you to pay stable installments foreverwhatever the Euribor or other reference indices do.

The drawback of having a fixed interest rate is that you will pay more in times when the Euribor remains low. For this reason, HelpMyCash advises take out a fixed mortgage with a reduced rate. Right now, the best offers have interest of around 3% or below. For example, the BBVA Fixed Mortgage has a type from 3% for 30 years in exchange for direct debiting the payroll and contracting the entity’s home and life insurance.

It must be taken into account, however, that The client can always try to refinance their mortgage if the Euribor falls and market rates are reduced. In this scenario, you will have the option of negotiating with your bank or other entities to try to reduce your interest or to switch to a variable rate.

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