Mortgage renewal options from bank! Help needed!!

Hi,

we have just received our renewal options from the bank (BBVA) for our mortgage and were wondering if you could give us any help. We have two options and are not really sure which one would be the best one for us to take. Here are the options, please could anyone give us some advice on which one looks like the best value for us,

Option 1; Euribor a un ano + 1% con revisiones semestrales

Option 2; Conjunto de entidades + 1% manteniendolo fijo durante tres anos

We are not sure what option means and what this rate is. Any help on this would be great,

Thanks

IMHO, I would go for option 1. The "Conjunto de Entidades" index is 2 points higher than the Euribor index. Nobody knows what is going to happen in the following three years, but the current trend is downward, and it is predicted it is going to remain this low for at least 2 years. In the unlikely scenario the Euribor rises enough, any savings option 2 can provide in this 3 year period will mean little compared to the extra interest you will be paying in the following years.

You can find a comparison between these two indexes by visiting:

http://www.hipotecasypisos.com/euribor.html

Dear Sir/Madam,

I would advise option 1 as well.

The Euribor rate will rise later on this year but even so option 1 outweighs the second.The current record-low rate is unsustainable on the long run.

Regards