Sin Más Variable-Rate Mortgage

For new mortgages.

To buy your primary residence.

For individuals resident in Spain whose total income exceeds €2,500/month.

Up to 80% of the value of the primary residence in the mortgage, using as a reference one of these two values, whichever is lower: appraisal value or the purchase value as the benchmark.

Fulfilling conditions¹:

Euribor + 0.75%

NIR first year: 2.50%

Variable APR: 5.23% 

Without fulfilling conditions¹:

Euribor+ 2.05%

NIR first year: 3.80%

Variable APR: 6.31%

This spread is maintained throughout the life of the mortgage, providing that these terms and conditions are met:

Salary Account, Business Account or non-salary account (discount of 0.30 percentage points).

Life insurance for 100% of the amount of the mortgage loan, contracted with Bankinter Seguros de Vida, S.A. de Seguros y Reaseguros (discount of 0.60 percentage points).

Comprehensive home insurance with a minimum home contents coverage of €30,000 and structure coverage equivalent to the appraisal value of the property for insurance purposes, taken out with Liberty Seguros and brokered by Bankinter, S.A., Operador de Banca-Seguro (discount of 0.30 percentage points).

Pension plan/EPSV: to have arranged and to keep in effect, over the entire term of the loan, a pension plan/EPSV with Bankinter Seguros de Vida (a Bankinter, S.A. Group company), and to make an annual contribution to that plan of at least €600 (bonus of 0.10 percentage points).

These products are optional for the customer, but if they are not acquired the rate applied when terms and conditions are fulfilled will be increased by the percentage points corresponding to the sum of each of the products not acquired.

Minimum amount of €60,000.
Maximum term of 30 years.

The arrangement fee is €500.

The customer will pay the appraisal costs. The Bank will pay the expenses of the Notary, registry, management agency and stamp duty (the amount of which varies depending on the autonomous community where the mortgage is arranged), except in the Autonomous Community of the Basque Country (where the customer pays such costs, except for the acquisition of a primary residence which is exempt from this tax).

A mortgage loan is a contract, usually between a financial institution and a customer (an individual or legal person), under which the financial institution delivers funds to the customer, who repays these in the period and under the terms and conditions agreed; this includes repayment of the nominal value of the loan and the payment of interest.

When someone buys a home but does not have the funds to pay for it, they apply to a financial institution for a loan. This loan is usually arranged as a mortgage loan, as this guarantees to the entity that the loan instalments will be met through the property that is going to be acquired. In most cases - but not our Sin Más Variable-Rate Mortgage - the borrowers must also give personal guarantees.

Mortgage loans have the lowest interest rates of the loans offered by banks.

In any mortgage loan, except for our Sin Más Variable-Rate Mortgage, there is a personal guarantee from the borrowers and the property is used as collateral. In other words, if the customer does not meet their obligations, in addition to the possibility of losing the property, their liability and that of the other parties involved in the transaction will extend to all of their present and future assets.

Mortgage loans mean that the loan repayment are guaranteed through a mortgage. This mortgage allows the financial institution to foreclose the home on a preferential basis compared to any other creditor.

Personal loans are usually for purposes other than buying a home, such as general expenses, vehicles, furniture or appliances; in such cases the interest payments are exclusively a personal responsibility.

The best indicator for comparing one loan with another is usually the interest rate, which can be variable, fixed or mixed. However, the customer also has to meet other expenses, such as arrangement, cancellation and appraisal fees, in addition to the interest rate. 

Therefore, the best way to find the cheapest loan is to look at the APR (annual percentage rate), which includes all of the expenses of the loan.

The customer should use this information to assess the terms and conditions of the loan and decide which best meets their needs and the needs of their family.

The Euro Interbank Offered Rate.

European banks lend money to each other for which they pay interest. These loans can have different terms. The average of the interest rates offered by European banks is calculated and this gives us the Euribor. However, only 44 of Europe's biggest banks - the main ones - are involved in the process.

The Euribor for each term is published daily at about 11 o'clock in the morning. Previously banks had to report their interest rates over the previous 24 hours, and the arithmetic mean of these rates was taken, eliminating the highest 15% and the lowest 15% to give the Euribor for each term.

Mandatory insurance: Damage insurance (called home insurance). This covers the damage a house might suffer, so as to keep the property in good condition.

The law requires mortgaged properties to be insured against damage for the appraisal value, as determined by regulation (Art. 8. Law 2/1981, of 25 March, on the Regulation of the Mortgage Market).

Optional insurance: it is good idea to contract life insurance to cover the contingency of death or permanent or absolute disability of the borrower, so that the compensation can be used to repay the loan.

There are several different mortgage repayment methods. The method applicable to the mortgage loans offered by Bankinter is the French repayment system, under which the loan is repaid in fixed monthly instalments, comprising capital and interest.

Interest is calculated based on the outstanding capital to be repaid, and therefore the proportion of the instalment that represents the payment of interest is larger during the early years of the mortgage repayment period.

Subrogation is the changing of one of the parties to a loan contract, whether the creditor (the financial institution) or the debtor (the customer).

Subrogation of the creditor happens when the borrower decides to change to another financial institution. There is a procedure for this, which gives the original bank the possibility to voluntarily improve the existing terms and conditions. When using this option, the debtor must also consider all of the terms and conditions offered by the new institution, particularly the arrangement fees.

Subrogation of the debtor occurs when ownership of a mortgaged property is transferred, and the buyer accepts the original terms and conditions, or the new conditions agreed, for repayment of the outstanding loan. This is not mandatory, as the buyer can ask to buy the house free of encumbrances, with the debtor repaying the mortgage.

The bank will now detail the documentation required to allow Bankinter to assess the solvency of the transaction, for both the applicants and any guarantors.

Identification data:

• An ID card/tax ID card or foreign-national residency card for the parties.
• The number of children for whom you are responsible.
• Marital status: single, married, widowed, divorced, legally separated, etc. Should the marital status be married under a financial system that requires marriage agreements, a copy of this must be provided. In the case of separation or divorce, a copy of the regulatory agreement and/or judicial ruling must be provided.

Financial details for employed workers:

• Photocopy of the last three salaries or proof of receipt of a pension.
• Photocopy of your employment contract or history, when you have been at the company for less than four years and/or this is not stated on your salaries.
• Photocopy of your personal income tax declaration (IRPF) for the last financial year. If a Property Asset Declaration has been made, a copy of this is required.

Financial details for self-employed workers:

• Photocopy of your registration for economic activity tax (IAE).
• Photocopy of quarterly VAT and personal income tax (IRPF) declarations, as well as the annual summary.
• Photocopy of your personal income tax declaration (IRPF) for the last financial year. If a Property Asset Declaration has been made, a copy of this is required.

Financial data in both cases:

• Photocopy of property tax (IBI) receipts should there be other properties in your name.
• Photocopy of property lease contract (if applicable).
• Photocopy of the last 3 payment receipts should there be other debts in your name (loans, leasing, etc.). In the event of subrogation, as well as the last three loan payment receipts, a copy of the deed for the mortgage loan that will be subrogated must be provided.
• Photocopy of proof of other income: pensions from other countries, etc.

Information on the property to be mortgaged:

• Photocopy of the private purchase contract.
• Photocopy of the deed of ownership, should there be no purchase transaction.
• Up-to-date land registry report (nota simple).

You will need

• a fully valid ID card/Tax ID number card or foreign-national residence card.
• In the case of second-hand properties, the last property tax bill and a certificate issued by the Association of Property Owners stating that the owner is up to date with all payments obligations.

The holders must be individuals who are resident in Spain, and the funds must be for the purchase of their primary residence.

Remember that there is no personal guarantee in this mortgage; in the event of default, the home itself will be used to pay off the debt.

The owners must demonstrate a monthly income of at least €2,000.

The maximum amount available will be related to the value of the property, with the value of the mortgaged property being understood to be the lower of the appraisal value or the purchase price.

Thus, the maximum loan you can apply for is:

• Up to 80% of the value of the mortgaged property if this constitutes the customer/borrower's primary residence (the lower amount of either the purchase value or appraisal value). For example, for a property that is the primary residence of the applicant with a value of €187,500, the maximum amount that may be applied for to finance this is €150,000.

The bank offers a range of optional products and services in combination with the mortgage loan for the property. These increase the interest rate or spread, depending on whether it is a fixed- or variable-rate mortgage, if they are not contracted.