The marketing of mixed mortgages now represents 50% of the total, according to Asufín. Entities are raising the average rate of these products to hedge against rising Euribor.
The marketing of mixed mortgages has surged to represent 50% of the total of the banking offer in Spain, according to data from the financial consumer association Asufín. This format, which combines an initial fixed term with a variable one, is gaining traction in a context of rising rates by the European Central Bank and with the euribor on the rise, as reported by eleconomista.es.
The trend is also reflected in the activity of intermediaries. According to iAhorro, they are currently signing 50.4% of new mixed mortgages, compared to 27% in January. The firm attributes this increase to the offers from banks, which "have clearly tightened on this product."
"Banks are trying to attract customers to this type of product. In recent months, we have clearly seen a rebound despite the dominance of fixed rates. We believe that if uncertainty continues, it may keep advancing," explains Miquel Riera from HelpMyCash.
Antonio Gallardo, co-head of studies at Asufín, points out that one of the reasons for the rebound in variable rates is "the growth of mixed mortgages, which are considered variable due to their longer term." The association maintains that entities are once again shifting a good part of their offer to this product and labels it as "the star product for banks." Asufín expects the trend to accelerate and to remain "at least until spring 2027."
Not all intermediaries see the same dynamism in contracting. Kelisto indicates that "people are still very reluctant to accept mixed mortgages due to their variable element, even if it is within a time frame" and that most clients prefer fixed-rate mortgages for stability. The broker acknowledges that "offers for mixed mortgages are growing, that is undeniable, although they are now more difficult to place." To protect themselves, entities have raised the average rate of these products, especially those offering more years at a fixed rate.
In the coming months, mixed mortgages will take centre stage for another reason: the wave of fixed term expirations. Some products signed in 2023 will expire as early as 2026, but the bulk will arrive in 2027. From iAhorro, they warn that "the bulk of those mixed mortgages signed in 2023 will expire in 2027 and will suddenly face a 4% increase." HelpMyCash estimates that the rise will exceed €1,200 per year for those mortgaged, who will try to subrogate or refinance the loan, although "this is not the best time given the conditions." Gallardo adds that "the banks are not particularly interested, making subrogation options more complicated" and prices "will be higher when refinancing."
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