Bankinter extends its non-recourse mortgage to its fixed and mixed rate offering
The ‘Hipoteca Sin Más’ (In English, ‘No-Hassle Mortgage’) is the only limited liability mortgage in the market that is guaranteed exclusively by the mortgaged property.
Bankinter includes its non-recourse mortgage, offered initially at a variable interest rate since July 2011, within its fixed and mixed-rate offering.
Bankinter is, once again, revamping its mortgage offering with an innovative product in the market: the fixed and mixed-rate ‘Hipoteca Sin Más’ (‘No-Hassle Mortgage’ in English).
Bankinter is now adding to its fixed and mixed-rate mortgage offering this mortgage-backed loan alternative. Bankinter has been offering non-recourse mortgages at variable interest rates since July 2011.
The ‘Hipoteca Sin Más’ is a mortgage product for primary residence purchases. It is a non-recourse loan, under contract and without any additional costs or fees. Therefore, if a mortgagor fails to keep up their payments, they will only be required to relinquish the asset guaranteeing their loan (e.g., the mortgaged residential property).
All types of non-recourse mortgages will be offered for primary residence purchases and may finance up to 80% of a home’s purchase or appraisal value (the lesser of the two). Individuals residing in Spain with a monthly household income of more than 2,000 euros are eligible to take out this mortgage. The maximum term on this mortgage is 30 years.
The interest rate on ‘Hipoteca Sin Más’ mortgages is the same as the prices for other mortgage products offered by Bankinter.
Accordingly, a fixed-rate ‘Hipoteca Sin Más’ mortgage can be taken out at 1.75% interest over 10 years; 2.10% interest over 15 years; 2.30% interest over 20 years; 2.45% interest over 25 years; and 2.55% over the maximum term of 30 years.
Mixed-rate mortgages bear interest rates of a 2.15% over 10 years; 2.35% over 15 years; and 2.50% over 20 years. With these terms, these mortgages would act like variable-rate mortgages at the Euribor interest rate, plus 1.20%.
On the other hand, the bank’s variable-rate mortgages have a fixed interest rate during the first year and the Euribor rate plus a customised spread based on each customer.
All these prices are subject to a pack of products that customers must also subscribe: a payroll account, a life insurance policy and a home insurance policy. If customers do not acquire any of these products, they may see these rates increase.
On the forefront since July 2011
The ‘Hipoteca Sin Más’ mortgage has been around for six years as a variable rate mortgage. Its unique features as a non-recourse loan make it one of a kind among Spanish banks.
Once released, it had a positive effect on the market. Under Spanish law, borrowers are required to put up all their assets for debts covered by their mortgages. Therefore, this mortgage product answered Spanish consumers who, due to economic hardships and credit restrictions, continuously demanded a limited-liability mortgage product to finance their primary residences.Now, the ‘Hipoteca Sin Más’ mortgage is answering the demand of customers in a new way by adopting fixed and mixed-rate features, which have notably grown in preference by customers according to current market prices and conditions.