If you are in this article, perhaps it is because you are considering the purchase of an apartment or house in Roses, at the Costa Brava, and you want to find out about the different types of mortgages that exist. Well, we explain to you in general terms the types of mortgages that exist so that you know their advantages and disadvantages and decide on the one that best suits you.

Currently we can say that a little more than half of the mortgages in our country are being made at a variable interest. A little less than half continue with fixed interest conditions and the latter is the most requested trend today.

That said, when people find an apartment or house in Roses, Empuriabrava and other first or second homes on the Costa Brava, they will have to think about how to pay for that new property. This purchase reflection should be related to the available liquid and the buyer's income. Furthermore, if you choose to purchase the property with a mortgage (in most cases), when seeking financing from a bank we find different types of mortgages.

What type of mortgage exists and which one is best?

We cannot say that there is a better or worse type of mortgage in general terms. Rather, we should know well the different types that exist to make the right decisions.

Mortgages with a fixed interest

This type is the most conservative and also has special advantages over others since we know the fee that must be paid month by month throughout the entire period of the mortgage loan. This is a formula almost as widespread as other types of mortgage and is a good option, according to specialists, for loans that do not exceed twenty years and family income is stable.

Variable interest rate mortgages

In the case of variable interest mortgages, the installments that must be paid during the loan will depend on the interest on the money calculated annually or semiannually, depending on the bank. The value or index on which these variations will depend will be given by the Euribor.

This type of mortgage, today, offers some advantages over the fixed one because the Euribor is currently very low, but we will not be certain of the growth it will have in the future and the variation in the installment.

In addition, we have to take into account that the bank's commissions on this type of mortgage are usually more advantageous or even in some cases, zero percent commissions.

Whatever the type of mortgage, an analysis of the applicant will have to be done to see what may suit them best. Among them we find the type of profile of the person requesting the mortgage, the expenses of purchasing a house, the risks that must be assumed with the mortgage, etc.

Mixed interest mortgages

It is another formula that has spread in recent years. This type of mortgage offers an attractive fixed interest rate for a period of time, for example 10 years. Subsequently, the interest will depend on the Euribor at that time. This type of mortgage can be interesting if we have job stability today and we foresee family salary growth in the next 10 years, for example, to be able to assume a possible increase in the Euribor, or not. We don't know the future and for us it is not the most attractive formula. Because? We cannot take advantage of the fixed interest rates that currently exist and although it may be an apparently attractive formula, it is riskier in the long term.

What type of mortgage is appropriate?

As we have said before, the ideal type of mortgage must be considered. Today, variable interest mortgages are a good option because the Euribor is very low. We remember a few years ago when the Euribor began to rise until it drowned many mortgage holders with interests that exceeded 5%. Currently the Euribor is very low but experts assure that in the coming years the Euribor will rise but we do not know with certainty how much it will do so.

You are thinking of buying a home in Roses or Empuriabrava, our real estate advisors will not only find the one that best suits your needs but we can also better explain the types of mortgage that exist for the purchase of homes or recommend some banks with the best conditions .

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