Many are looking to finance their property purchase when so few days remain before the end of the year. Given the context stressed by inflation and interest rates rising overall, signing a mortgage can be more complicated than ever. This is why Tecnotramit does not cease working in order to advise our clients as best we can and help make the best decision possible.
Variable rate mortgages have become ever more expensive since the European Central Bank (ECB) propelled new monetary policies to combat the effects of inflation. While the reference rate for variable rate mortgages is far from record highs, the truth is that families with mortgages due a review can pay up to €3,000 more a year because of the EURIBOR’s changing trend.
At this point, one this is clear: making the right decision can save the property buyer a lot of money during the transaction. Do you know how to avoid the most common errors when taking out a mortgage? Some basic advice:
- Rushing is never good. Don’t hurry when deciding to buy or access financing. Take the time you need and gather all essential information.
- Calculate your maximum budget. Once you have decided to buy a property, you must know the maximum price you can pay for the asset and what financing capacity you dispose of.
- Research the market looking for the best conditions and offers taking into account the moment you will take the mortgage out and the property market trends over the medium- and long-terms.
- Analyse carefully and in full the contents of the mortgage contract to not find any surprises with your financial institution during the life of the contract.
- At all times seek advice from industry professionals who can indicate which is the best way to continue, what conditions can be most interesting, and how to manage the rest of the transaction, taking into account any appropriate red tape.