The mortgage stoppage revives home savings accounts… without tax advantages
Both official bodies and financial institutions themselves are detecting a Mortgage credit slowdown. In parallel, families are accelerating the amortizations of your home loans as a protective measure against Euribor escalation and the consequent increase in mortgage payments. These two phenomena have made the financial entities have dusted off the housing accountswhich became very popular during the ‘property boom’ years.
And it is that the rise in the Euribor, which has gone from trading in negative to close to 4% in twelve months, will lead to a cooling of the real estate market as a consequence of fewer purchase and sale operations, since this rise in the index to which most variable-rate mortgages are referenced means that the banks make the price of loans for this purpose more expensive. And, with this, many potential buyers are left out. I already know is reflecting in the new outstanding mortgage balancewhich closed February at 3,996 million euros, recording consecutive falls in the last four months.
On the other hand, the households are accelerating the rate of repayment of their loans mortgages to shield themselves from the rise in the Euribor. Thus, in February of this year, the outstanding mortgage balance fell another 0.40% to stand at 506,157 million euros, the lowest level since June 2021. The amortized amount, which reached 2,037 million euros, is the second highest since May 2015, after it fell by 2,763 million euros in January. The combination of both phenomena would put pressure on the credit business of financial institutions.
and this is revitalizing housing accountswhose objective, like the payroll accounts that offer remuneration, increase the customer’s relationship with the bank for a longer time, in addition to making sure that the contracting of the future mortgage will be done with the entity. At the moment, the offer is incipient and comes mainly from the medium and small Spanish banks. Among these entities stands out kutxabank. The bank of Basque origin has just launched a product of this type that also has a premium if the future home has an A or B energy rating. Regarding remuneration, the product offers a 60% remuneration referenced to the annual Euribor during the term of the account, plus an extra bonus of 60%, which may reach a maximum of 1,000 euroswhich will be paid in a single payment.
These accounts are not new. And it is that I know popularized in the years of the brick craze in Spain and they offered the same tax advantages as the deduction for home purchase, that is, their clients could deduct 15% of a maximum of 9,040 euros, but they were also conditioned on the purchase of the home within a maximum period of four years from your hiring. Now, no longer enjoy tax deductions that were in force until 2013, except in some territories, such as the Basque country. Nor do these temporary limitations apply, not even the remuneration is higher than that of the rest of the remunerated accounts.
At the moment, the entities that have opted for this type of product are few. In addition to Kutxabank, Ibercaja stands out with its “Contucasa Account”, which offers a remuneration of 1%, Laboral Kutxa or Caja Rural de Navarra.
The fact that some of these offers condition a lower price of future mortgages if they are contracted with the entity that markets the housing account would make it easier for the entities plan future operations. “Entities are looking for long-term clients and to whom they can “sell” various products,” explains Estefanía González, Kelisto’s personal finance spokesperson, who also recalls that with home accounts the term is guaranteed. Hence the interest on the part of the banks in recovering them.
As for those with mortgages, they ensure a better final price if they trust the reference bank. In addition, for those who come from Basque Country can benefit from the tax bonus. However, this can also be a double-edged sword. “Given how changing the mortgage market is, it is likely that, when the time comes to want to contract it, the mortgage that at a certain moment seemed attractive to us, has ceased to be so”, although the opposite case may also occur.