Mortgages at 95%, cheap loans... Banks squeeze the mortgage war to take advantage of the new brick fever

• INE The mortgage firm grows 24% and closes its best month of November since 2010

• Podcast Home Buying Guide

The

unleashed by the pandemic has put banks on guard, who have seen in this new golden age of the

a business opportunity that they do not want to miss. Eager to capture future buyers, the battle between the entities has hardened in recent months to the point that some are beginning to

of the property and many are applying the biggest price drops in living memory. the market.

The latest big surprise in this regard has been given

, the neobank owned by Andbank Spain, El Corte Inglés and AXA, which has just launched the

for all customers with financing of up to 95%.

But it is not the only one.

Banks such as

,

or

have also put mortgages on the market in recent months of up to

some aimed only at young people and others for a broader profile but under stricter conditions.

The practice breaks with the trend of recent years, when banks stopped granting such high housing loans after the bursting of the real estate bubble in 2008. In previous years it became common for entities to grant loans of 100% or more to finance other expenses outside the home, but the experts consulted rule out that we are now in a scenario even similar to that of then.

more risky

"It is true that entities try to take more risks than in previous periods by launching products that are more attractive, as is the case of specific mortgage products for young people, which have a longer repayment time and seek to attract this public with more difficulties to gather 20-30% of the recommended savings when applying for a mortgage", explains

, head of mortgages at

.

However, he maintains a cautious message: "For the moment, we see that in general terms the bank continues to focus on financing a maximum of 80%", he adds.

The

is part of a circle in which the rise in home lending encourages home purchases, while the fervor for home ownership encourages buyers to apply for financing. And all this in a scenario marked by

also at its lowest levels, so that neither banks nor clients want to miss out on the opportunity.

"We are facing a battle waged by the financial entities in which they try to compete with the level of the Euribor, lowering prices to stimulate sales. The good current interest rate reduction conditions are causing many small savers to start buying housing", comments

, Director of Studies and Spokesperson for the real estate portal

.

And the increase in sales also pulls the mortgage market. In the absence of knowing the data for the last month of the year, 2021 could have ended as the best mortgage year of the last decade. For now, the month of November, with 36,220 loans granted, became the best month of November since 2010. The figure represents a year-on-year increase of 24.1% and raises the accumulated annual increase to 23.6%, according to data from the National Institute of Statistics (INE).

The balance also reflects the

(67.5%) over the

(32.5%).

Experts believe that entities will continue betting on fixed-rate offers because they are the ones that bring them the greatest benefits, although both fixed and variable mortgages could become more expensive as the Euribor rises in level.

"As long as rates remain stable and at minimums, the outlook will continue to be the current one, with a great mortgage war to attract new customers and with a trend towards an increase in the fixed-rate offer that is causing the rates of both products to be closer and closer," says Carbajal.

Clients also profit from this particular battle.

"By having more attractive interest rates, it is becoming easier to find a fixed mortgage with a long repayment term of up to 30 years. In fact, today, you can find fixed mortgages at an interest rate of 1%", he adds .

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