What is a mortgage?
Mortgage Comparison Spreadsheet Excel – Mortgages are loans offered by banks normally destined to the purchase or remodeling of real estate, being able to constitute habitual residence or second residence. Therefore the guarantee of the mortgage is the mortgaged property itself. With our mortgage comparator you have the possibility to find the one that best suits your needs, being able to indicate the amount of money that you need, in how much time you can return it and the percentage that you need to finance on the value of the house. In addition to comparing mortgages in Busconómico you can use our mortgage simulator with which you can calculate the monthly installment of all mortgage loans automatically, and if the mortgage is at variable rate the calculation is done with the updated Euríbor today.
Mortgage Comparator Facts
All the details of the mortgages that are shown in the comparator have been obtained from the data offered by each of the banks in Spain. Although we try to keep this information as current as possible, it is always advisable to confirm the information on the official website of the bank to obtain updates on each mortgage. From the listings and the mortgage records published on our website you will find a link to the bank page where they have the latest information. The great advantage of seeing the data on our website is that you can compare them between different mortgages easily with those of other banks to know which is more convenient.
The data that you will find of each mortgage in the listings are interest and the maximum term in years, and accessing the detail of each one you will find other interesting data like the maximum and minimum financing that you can request, the limit of years, if you have commissions and which Are, the requirements, the links, customer opinions and the additional advantages or disadvantages of the mortgage, for example if it offers free home insurance, among other things. Interest is one of the most important points because it determines how much we are going to pay for the loan, you can find fixed interest mortgages (a percentage) and mortgages with a variable interest that is usually calculated with the value of the Euribor plus a fixed percentage. It is interesting when comparing between mortgages read the detail of bonding requirements that the bank requires to reach the interest rate of the offer.
Each mortgage has its own conditions that you can know in the detail of it. The conditions usually include the seniority and salary that the applicants must have, to ensure that they can then meet the mortgage payments, and the documentation necessary to formalize the loan. Depending on the amount of money that we will borrow and the deadline to return it these conditions may change.
Types of comparator mortgages
When comparing using our mortgage comparator you have to take into account that the global listing appears all that exist, therefore you have to differentiate between fixed mortgages, variable and mixed mortgages.
Types of mortgages
Fixed mortgages always have a higher interest rate, but the applied rate is fixed and valid for the life of the mortgage loan, so the monthly installment will always be the same. At first they are more expensive but in case of rise of the Euribor will not be affected, this type of mortgages have more customers since they gain in security and avoid surprises in case of a future rise of interest rates of reference.
The case of mixed mortgages are loans between midway between fixed and variable, since they have a number of initial years with fixed rate, generally between 5 and 10 years, and the rest at variable rate. This modality is usually contracted to avoid surprises in the monthly installments in the first years of mortgage that is when the customers make a greater economic effort in proportion to their disposable income and do not want to run the risk of sudden rises during those years.
Be careful when comparing mortgages with the fine print
Comparing mortgages from different banks is a common mistake to look exclusively at the interest rate. All banks publish the interest rate in case of fulfilling all the bonding requirements, so the best offers on mortgages often hide small print. For each requirement that is not met, the interest rate rises and in the end may be much higher than the one offered.
There are some minimum requirements that virtually ask all banks to apply the lowest interest rate, they are basically domicile the payroll and take home and life insurance. But from these minimums each bank is different, generally the online banks are the less binding demand such as the case of ING mortgages and those of Unoe.
There are simple obligations to fulfill and others either of greater complication or directly uneconomical. When comparing mortgages you have to look carefully at:
Domicile of payroll: You always have to domicile, but some banks require minimum amounts to apply the lowest interest rate or even to grant the loan.
Insurance: when using the mortgage buyer we must check among the mortgages that we are interested in the type of insurance they require, especially life insurance since it is not the same annual, monthly or premium premium insurance as required Some banks. A single premium insurance will mean a very large initial outlay since all the years of the policy are paid in a single payment at the beginning of the mortgage. In this section there are banks that demand to contract payment protection insurance and others that do not have it as a requirement.
Receipts: it is normal that a minimum number of receipts are required to be domiciled, although not all the mortgages require it to lower the interest rate, but you must read the number of receipts required since there are cases where the number is so high that it is impossible To comply.
Credit cards: it is important to compare mortgages because some entities to apply the lowest interest rate require a credit card and also make a minimum annual consumption on credit with the card, usually about 3,000 euros per year. The problem is that we will end up paying interest of around 25% APR for those purchases. So if we do not raise the mortgage rate but if we meet that obligation we will end up paying a large amount of interest on the card.
Pension plans: lately some mortgages from traditional banks are beginning to require a pension plan to qualify for the best interest rate offer, in this case a minimum annual amount of pension contribution is required to achieve the Bonus The problem is that a person who applies for a mortgage normally in those moments of his life does not have excesses of money to make contributions to a pension plan since in addition to the purchase of the house will have expenses to furnish and condition the housing that goes to buy.
Expenses when signing a mortgage
Financial institutions have stopped offering 100% of the appraised value of the home, this makes it difficult to access a mortgage and it becomes more necessary than ever to compare for the large amount of expenses that any individual has to face before even paying The first installment of the loan. There are expenses that have to be paid even if we are not granted the mortgage, such as the appraisal, so it is imperative to find out through our mortgage comparator the costs and costs that we must face.
There are a number of initial expenses that most of the mortgaged ones do not usually take into account and that, in fact, increase the cost of housing by up to 30%. These are expenses that are not included within the loan amount and therefore require savings to be made.
Charges: this is the expense that we have to undertake for an appraiser to make an assessment of our home in order to obtain the mortgage loan. This is an expense independent of the approval of the mortgage and, therefore, we will have to pay it both if we have been granted the mortgage as if they have not done so. This amount is not fixed, although it is usually close to 0.01% of the value of the property. Thus, for a house of 200,000 euros, the appraisal costs can be 200 euros.
Expenses of Registration in Property: also independent to the grant of the mortgage, it is necessary to verify the ownership and charges of the housing that has an amount that does not exceed 30 euros. Once acquired the house, we will have to assume an expense of around 0.2% of the value of the same to inscribe it in the Property Registry.
Notary fees: they are applied both in the management of the purchase and sale of the property and in the mortgage. These are the fees we pay the notary for esc
Thus, for a mortgage of 250,000 euros for the purchase of a new building, we will have to assume a cost close to 30,000 euros, which we can disaggregate as follows: 200 euros of valuation, 500 euros of registration in the Registry of The Property, 500 euros for notary expenses, 300 euros for management fees, 2,500 euros for the IAJD and 25,000 euros for VAT. In total, 29,000 euros, which we will have to have saved before formalizing the loan.
In short, when choosing and comparing mortgages, you should not only look for the ones that offer the best interest rate, or the cheapest mortgages. It is very important to read and understand the conditions of each one of them since a bad choice can tie us with a mortgage much more expensive than we thought. Each unfulfilled condition will raise the interest rate on the loan. If in addition in the future rises the Euribor the mortgage could be complicated even more.
In the comparator of mortgages of Busconómico we offer detailed information, opinions and valuations of each mortgage without small print in order to choose the best mortgage in each case.