The controversy with the tax on documented legal acts, a new law that is falling, the Euribor on the rise … The mortgage market has been subjected to numerous ups and downs during the last months of this year, so there are few who wonder what The strategy will be followed by banks in 2019.
In that sense, from the Good Finance mortgage comparator, they venture to affirm that interest will rise and that many additional expenses will be reduced or abolished.
Higher interest and / or higher opening commission
Specifically, the experts of this comparator comment that banks are very likely to raise interest on their mortgages, although in the case of the variables they clarify that this increase will surely affect only the initial rates (with the upward price of the Euribor it is difficult that the bank increases the differentials). Also, there could be an increase in the opening fees .
But what could be the reason for this increase? The first would be the enactment of the new mortgage law , which will reduce early repayment, tighten the conditions to execute the mortgage and force entities to bear most of the constitution expenses. Consequently, the cost and risk of mortgage operations will increase , so banks will probably raise the price of their mortgages to compensate.
The second would be the upward price of the Euribor , the main benchmark for calculating the interest on variable mortgages. Everything indicates that this index will continue to rise throughout the next year (in fact, it is expected to reach positive values by the end of 2019), which will make all loans linked to this rate more expensive . And in parallel, this is also likely to increase the rates of fixed mortgages .
Additional costs will be reduced
Even so, from Good Finance they say that 2019 will also bring good news for mortgaged people , especially thanks to the enactment of the new law that is expected to take effect in March. And it is that this regulation will force banks to pay the vast majority of the deed expenses of their mortgage loans: the tax on documented legal acts (which have already been paid since November 10, 2018), the notarial and registration fees and the fees of the agency. Thus, the client will only have to face the appraisal of the home.
Another positive aspect of the new regulation is that it will lower early repayment , whereby banks can currently charge a commission of 0.5% (0.25% as of the sixth year). As soon as the law enters into force, in variable mortgages only compensation of 0.25% may be applied in the first three years or 0.15% in the first five (and nothing later). In fixed mortgages, however, the penalty may be 2% during the first 10 years and 1.5% for the rest of the term.
Variable mortgage at the fixed rate
Also, those who want to pass a variable mortgage at the fixed rate to enjoy a stable fee will have to pay much less. If this modification is carried out in the first three years of the contract, either through a novation or a subrogation, the entities may only apply a commission of 0.25% on the capital pending reimbursement. And if the interest is changed later, no penalty can be charged.