70% of mortgagors in Spain now prefer a combined mortgage loan over a fixed or variable one, according to research by iAhorro.

According to a recent study by iAhorro portal.

Around 70% of Spanish mortgage borrowers prefer a mixed mortgage over a fixed or variable mortgage. In a context of economic uncertainty, with rising interest rates and the Eurointerbank rate, almost 70% of Spaniards who buy a home and seek financing from a bank choose a mixed mortgage. These conclusions can be drawn from the iAhorro Index, which published its results for the third quarter of 2023. The analysis was carried out for the period from July to September.

Until last November.

Fixed mortgages were the most popular in Spain, accounting for 66.21%, while variable mortgages took 9.66%. However, there was a change in trend in November, with 24.14% of iAhorro users opting for a mixed mortgage, and the proportion of signings continued to rise, with 35.78% in December, 40.30% in January and 63.64% in February.

Director of iAhorro portal, Marcel Beyer

Notes that the mixed mortgage has surpassed even the fixed mortgage, which was preferred by Spaniards until November 2022. He attributes this to the fact that "the initial fixed part of the mixed mortgage usually has a low interest rate compared to the fixed and until the second part of the mortgage the Eurointerbank rate does not affect the monthly payment". According to iAhorro data, users received an average initial fixed interest rate on a blended mortgage of 2.09% in July, 2.17% in August and 2.41% in September.

Still, interest rates on fixed mortgages and the Eurointerbank rate remain higher

For example, in September, the Eurointerbank rate was 4.149%, while interest rates on fixed mortgages averaged between 2.85% and 3.11%.

Institute for National Statistics (INE)

Does not provide data on mixed mortgages, but iAhorro claims that their clients' terms are more attractive than the INE average. The CEO of iAhorro notes that "having the help of an expert and mortgage advisor is becoming a very important factor that can help save thousands of euros on mortgages".

Interestingly, interest rates on fixed mortgages have risen slightly over the past few months, while interest rates on variable mortgages have declined

However, there are still banks that offer good conditions depending on the profile of the client. Therefore, those who have already chosen housing should not wait, but boldly conclude mortgage agreements.