Applying for a mortgage loaninvolves making a commitment that will last for many years. It is certainly a responsibility. In any case, when applying for our loan we have to take into account that we can reduce the interest rate by purchasing so-called combined products or combined sale products. The products combined with the mortgage are those that the bank offers us to discount the price of our loan, lowering the interest rate and enabling us to get a better mortgage.
Basically, these combined products are:
- Home insurance.
- Credit/debit cards.
- Direct debit of our payroll, as per an annual minimum.
- Pension plan, with a minimum annual contribution requirement.
- Life insurance of the policyholders, with coverage for their families.
- Direct debit of payments.
- Payment protection insurance.
- Current account with no maintenance fee.
Until the Mortgage Act entered into force, these products combined with the mortgage were not regulated. The regulations typified the type of linkage and its legality, which was previously vague, since in many cases these products were offered systematically, sometimes even compulsorily and without prior notice, and could end up making the loan significantly more expensive. One of the purposes of this Law is to reduce the expenses associated with the mortgage, which is why it allows certain products to be taken out with third parties, and not necessarily with the party granting the loan. Although it does not specifically regulate them, it does contemplate some new features concerning marketing them, while always making it clear that no entity can force us to take out an insurance policy exclusively with it.
In addition, it must be said that not all products susceptible to combined sales involve the same commitment, nor do they have the same importance. For example, although we are not obliged to take it out with the bank itself, it is advisable to take out a damage insurance policy that guarantees the debt will be repaid in the event of fire, or a life insurance policy that pays out if the mortgage holder dies.
What interest rate reductions can taking out complementary products in a mortgage entail?
These products can entail a discount of between 1% and 1.3% of the spread (i.e. about 1,000 euros per year) compared to the same mortgage with no linkage. In addition, it should be borne in mind that the more associated products we take out, the greater our loyalty, and therefore our discount; so we will get a better mortgage.