How to negotiate a mixed mortgage with your bankM

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Currently, the mentality when applying for a mortgage is very different from what it has been for a long time. The variable rate is no longer the obvious option, and less popular mortgages are gaining strength: mixed mortgages, for example. Today we explain how to negotiate a mixed mortgage with your bank to sign it with the best conditions. Let's start!

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Main characteristics of mixed mortgages
If you have thought about applying for a mixed mortgage, you will already  know that this type of mortgage combines fixed and variable interest. The way they do it is the following:

Fixed type . During a phase that can last between 3 and 10 years, interest is at a fixed rate.
Variable type . After that time, it changes to the variable rate plus the required differential, and remains that way for the rest of the life of the loan.
What is the ideal context for a mixed mortgage ? One in which, at the beginning, the Euribor is high and the fixed rate allows us to avoid its consequences; but that, in the change to the variable rate, shows a low Euribor with which to pay little interest.



Recommended reading:   Euribor in 2024: what is the forecast?
How to negotiate a mixed mortgage with your bank
Unlike 100 mortgages, mixed mortgages do not involve higher installments or special difficulty in granting. Talking, therefore, about how to negotiate a mixed mortgage with your bank means talking, in essence, about how to negotiate a mortgage.   



Negotiate the fixed interest period well
You have already seen that the fixed rate phase in a mixed mortgage can last up to three times longer than in another. As we have said, the usual duration of the fixed rate period is usually between 3 and 10 years . We have also commented that, in an ideal scenario, the fixed rate will coincide with a high Euribor.

Currently, the Euribor is high, above 4%, but it is difficult to predict when it will benefit the variable rate again. The forecast is that interest rates will remain froze, and only in the last part of that year will they begin to fall. Is a 3-year fixed interest appropriate? Out of 5? There is no infallible answer . What there is, if you need it, are ways to improve your mortgage .  



Don't forget the variable type
The duration of the variable rate phase and, of course, the rate, are the points of the mixed mortgage that allow for the greatest differences. Despite everything, we must not forget that, in a mixed mortgage, the predominant rate is the variable one .

The reference index used is almost always the Euribor, which is not determined by either the client or the bank. What they must agree on, however, is the mortgage differential , that figure that you see in the offers added to the Euribor. The lower it is, the less you will pay.