At the moment you want to secure the mortgage interest, you insure your monthly payments, as it were. You will then not suffer from fluctuations in interest rates. You can also opt for a mortgage rate that is variable. This variable interest rate is often based on the Euribor rate with a fixed surcharge. If the mortgage interest rate rises, your monthly payments also rise.
A disadvantage with a long-term interest rate period is that you can also adjust the monthly expenses yourself. This can be desirable, for example, if interest rates fall as is the case now. We always recommend to choose an interest period that suits your horizon. Are you planning to live and emigrate in a house for only a few years? In such a situation it makes no sense to fix the interest for 20 years.
If you have a bank savings mortgage or a savings mortgage, the fixed interest period is less important because the interest you receive on the linked savings account is equal to the mortgage interest you pay.
Which conditions are important to you?
Discussing the lowest interest rates has been described in detail. The invisible side of a mortgage is not. These are the mortgage conditions. The following conditions may apply:
- What is the period of validity of the offer and can still be extended;
- What costs are involved in extending the mortgage offer;
- Is there a cancellation fee if you do not wish to make use of the offer after signing the mortgage offer?
- If the mortgage interest rate falls to the moment of passing, I also benefit from it;
- Is it possible to pay a fine on relocation;
- How much can be paid without penalty and this is per calendar year or another period;
- Is the mortgage interest automatically adjusted if the principal sum falls;
- Does the mortgage have a good moving arrangement?
In addition to these conditions, dozens of conditions apply to your mortgage. That is why it is important to have access to the bank terms and specific mortgage conditions of the mortgage you wish to conclude in addition to the interest rate proposal.
Which bank or lender then offers me the best mortgage
In the meantime, you have been given an impression of the choices that exist to come to a good balance.
There may also be circumstances that determine your final choice for a lender such as the throughput. If you are in a hurry with your mortgage application because your financing reservation is about to expire, a bank that is very busy is usually not a good choice.
The reputation of the bank or lender may also play a role. For example, if you want a green mortgage, chances are you will not find the mortgage provider with the lowest interest rate.