With the approval of the new mortgage law just around the corner, several entities are already offering to pay absolutely all the expenses associated with the deed of the mortgage loans: the notary, the agency, the appraisal … But the client really Does it come to mind that you do not have to face these costs? After analyzing the conditions of the mortgages that have that advantage, the bank comparator HelpMyCash.com concludes that, in most cases, what is not paid at the beginning of the operation ends up paying in the long term in interest.
6 banks pay all constitution fees
Right now, up to six entities pay all the expenses of setting up their mortgages: ING, Santander Bank, Pibank, MyInvestor, CaixaBank and Caja Rural del Sur. In addition, two more banks openly communicate that they cover almost all the coasts except for the appraisal (Deutsche Bank) and the registration fees (EVO Bank).
But nevertheless, five of these eight banks that assume all or most of the expenses have raised interest on their mortgages (ING, Banco Santander, CaixaBank, EVO Bank and Deutsche Bank), an increase that moves between 0.12 and 0.55 percentage points. Therefore, what these entities pay at the beginning of the operation recover it in the long term through interest and, in addition, end up with higher profits.
More expensive in the long run
From the Comparator HelpMyCash.com they quantify that increase by an average of 0.17 points. To give us an idea, let us imagine that, before taking on more expenses and raising interest, our bank offered us a mortgage of 150,000 euros to 25 years with a Euribor rate plus 1%. In that case, with the current Euribor at -0.116% we would have paid 17,240 euros in interest and ones 1,000 euros in court costs (the appraisal and half of the expenses of notary and agency) without counting those of sale and the possible commission of opening.
On the other hand, that same loan without formalization expenses and with a Euribor rate plus 1.17% would now have a total cost of about 20,695 euros in interest. As we can see, despite saving us the disbursement of 1,000 euros at the beginning of the operation, in the long run we would pay 2,455 euros more than before the modification.
Therefore, from HelpMyCash.com recommend compare these mortgages without constitution expenses with others, despite not offering this advantage, have attractive conditions. Two good options can be, for example, Variable Mortgage of Openbank (1.89% the first year and Euribor plus 0.89% later), which has no commissions and only requires direct payroll, and the Fixed Mortgage of Coinc (1.99% to 20 years), which has no opening commission or linked products of any kind.
The banks will prepare for the new law
Even so, the rest of the banks that operate within the mortgage market will soon take on more constitution expenses to adapt to the new law that will be released in March if the forecasts are met. And it is that this regulation will force the entities to take charge of the cost of the notary, of the agency, of the registry and of the tax on legal acts documented (IAJD), while it will leave the payment of the appraisal in the hands of the client.
But the new distribution of these expenses is not the only reason that can raise interest. According to HelpMyCash.com, the new regulation will also lower early repayment and toughen the conditions to seize the home after several defaults, so it is very likely that banks will increase rates to compensate for this increased risk of operations. Therefore, from the comparator point to that Perhaps you can go out more on account to hire the mortgage now to anticipate that foreseeable increase in interest.