CHEAP MORTAGES
Get the best mortgage on the market with our help.
(Conditions updated in 2024)
Our search engine and mortgage simulator
shows you what your monthly payment would be
and our mortgage comparison tool
helps you find cheap mortgages
by showing the conditions
Ferco Gestión offers and how much you could save each month.
Taking into account current market conditions:
How do you get the best mortgage on the market?
We’ll tell you.
What is the Euribor?
In general, mortgages are tied to an index that establishes their interest rate. So, in most cases, how much your monthly payment goes up or down depends on the Euribor, which is set by the European Central Bank.
Euribor is the interest rate that applies to operations between European banks, meaning the percentage one bank pays in interest when borrowing money from another bank. It is really the average rate European banks lend each other money at over a given period of time. This rate is published daily. The rate most often used as a benchmark index for mortgages is the monthly average of the 12-month Euribor rate.
For adjustable-rate mortgages, the interest rate is the sum of two things:
-The 12-month Euribor rate.
-The mark-up the bank applies.
Mark-up: a set amount added to the benchmark index.
Want a cheaper, more affordable mortgage?
Trust Ferco Gestión. We’re experts in negotiating with banks to get the best financing conditions for our clients.
We’re independent; we aren’t bound to any bank. Every day, we assess the conditions of banks such as BBVA, Santander, Ibercaja, ING, Bankinter, Deutsche Bank, etc. This means we can offer a wide range of options and, from there, negotiate based on your real situation.
We have a team of specialised negotiators who have the skills to get you the best banking solution for your personal needs, quickly and comfortably. The vast majority of our clients choose to work with us again.
If you’re going to buy a property, whether a single-family home, flat or commercial premises, and you want a cheap mortgage, contact us.
Cheap mortgages. Know which ones are best?
If you’re looking for the cheapest mortgages on the market, in addition to assessing your financial situation, remember it is essential to look beyond just the interest rate each bank charges. The interest rate is important, but there are other factors that determine whether a mortgage is truly affordable. There are two key factors: mortgage commissions and combination sales:
Mortgage Commissions
Each bank applies different commissions. Some banks aren’t charging any commission for taking out a mortgage right now. Although it is true that with the new mortgage law many of the commissions have disappeared or been forced way down, it is important to note that some banks have taken it one step further and got rid of absolutely all commissions.
The commissions that you may have to pay when taking out a mortgage today are:
Initial commission
Subrogation commission
Commission for partial or complete early repayment
No-commission mortgage
The growing competition among banks has forced them to improve the conditions on their mortgages. Banks offer attractive interest rates to get clients’ attention, but in many cases they’re tied to combined sales. It is important to take these factors into account when choosing a mortgage, as well as others like the commissions and fees for taking out the loan.
We should take advantage of the competition among banks, as it gives us a wide range of options to choose from. On top of the ones we’ve already mentioned, the better your financial situation, the more negotiating power you have with the banks. So, if you’re considering buying a home, your best option is to contact mortgage experts like us to negotiate for you.
Initial commission
Although most banks have eliminated this commission, some still refuse to fully do away with it. The law doesn’t set a maximum amount allowed for the initial commission, so it depends on each institution. This commission, if applied, must include all approval and signing fees.
Subrogation commission
These commissions depend on each bank, as they don’t all apply the same fees.
Commission for partial or complete early repayment
Compensation for early repayment, whether partial or complete, can’t exceed the financial losses incurred as a result of that early repayment, within the legal limits, based on the type of mortgage:
Fixed mortgage: 2% will be charged on any capital repaid early in the first 10 years of the loan and 1.5% on capital repaid from that time to the end of the mortgage.
Adjustable-rate mortgage: There are two types, depending on the bank:
0.25% on any capital repaid early in the first three years of the mortgage.
0.15% on any capital repaid early in the first five years of the mortgage.
In both cases, there is no fee on early repayments made after the first three or five years of the loan.
Combination sales
Insurance policies, pension plans or cards you have to take out to get a lower interest rate from the banks are an extra cost you need to consider to make sure your mortgage is as cheap as you think.
Fixed or adjustable-rate mortgage: Which is cheaper?
Which type of mortgage should I get?
Fixed mortgage
There are advantages to knowing ahead of time how much you are going to pay in interest over the life of the mortgage. The biggest advantage of fixed-rate mortgages is that they’re stable. You know how much the payments will be from the very beginning so you can organise your finances better. With a fixed mortgage, you won’t have any surprises based on external economic factors or central bank rates.
If you’re looking for a cheaper fixed mortgage, contact us.
Adjustable-rate mortgage
There are three direct advantages to these loans that make them highly attractive to most borrowers. They are as follows:
The initial payment is more affordable. You tend to pay less at the beginning of the loan because the initial interest rate is lower. The key to adjustable-rate mortgages is that the rate is always lower than on a fixed mortgage when you take it out. So in the short-term, they’re more affordable. Most people only look at the monthly payment for the first few years of the loan, so this type of mortgage is very popular. Adjustable mortgages can be paid off over more years.
Mixed mortgage
Mixed mortgages combine an initial period at a fixed interest rate (generally 5 to 10 years) and after that time, the mortgage becomes adjustable, with the interest rate updated every 6 to 12 months based on the Euribor plus the agreed mark-up.
While the loan has a fixed rate, the monthly payment will always be the same. This gives clients who think the Euribor rate will drop in the future more security.
Compare the conditions Ferco Gestión offers with the best mortgages at other banks.
Check out our mortgage comparison tool to calculate how much you’ll pay each month depending on the mortgage you choose.
Do you want to know how much you’d pay each month for your mortgage?
Do you want to save money each month by paying less for your mortgage?
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MORTAGE SIMULATOR
Do you want to know how much you’d pay each month for your mortgage? Try our mortgage simulator:
- Enter how much you want to borrow and how long you want to pay it off over.
- Then, enter the interest rate you’ve been offered and hit calculate.
- This will show you the monthly payment based on the amount, number of years and interest rate you entered.
CALCULATE YOUR MORTGAGE FEASIBILITY
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