Which banks have the “cheaper” spread?

Mortgage credit consists of financing for the acquisition of permanent housing. Anyone with mortgages is certainly aware of all the news that has been released.

Payouts have skyrocketed because Euribor rates are also rising. Find out which are the “cheapest” banks to currently take out mortgages.

Currently taking out a mortgage loan is not difficult, but current values ​​do not help. Interest rates have skyrocketed and this is reflected in the monthly payment. The banks' commercial offer has changed little and this limits the end customer.

According to The bank of Portugal, one of the important decisions to be made when taking out a mortgage is the choice of interest rate. The interest rate can be fixed or variable. In Portugal, the vast majority of loans have a variable interest rate. When loans have a fixed interest rate, it usually only lasts a few years. In mortgages with variable interest rates, the interest rate of the loan results from the sum of two components: the index or reference rate, which is the Euribor, and the spread.

The customer can choose the Euribor duration, the 3 and 6 month Euribor being the most used in mortgage loan contracts.

The Euribor value is revised after the period to which it refers. For example, the 3-month Euribor is revised quarterly and the 6-month Euribor every six months.

According to a request from echo the price list of 11 financial establishments, which are the source of more than 95% of mortgage loans granted to families, it appears that on average, propagate The minimum practiced is 1%.

It should be noted that a proposal with the lowest spread does not always mean a lower payment, nor the cheapest credit.

The spread is freely defined by the credit institution for each mortgage loan contract. To determine the spread, the institution takes into account not only the credit risk of the client, but also the loan guarantees, including the ratio between the loan amount and the value of the property on which a mortgage is made (LTV ratio or loan-to-value).

According to today's news, Euribor rates are rising at three and six months to reach new 14-year highs.

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