Bankinter improves its variable rate mortgage with a spread of 1.50% on the Euribor and an initial interest rate of 2% during the first year.
The mortgage can be used for either a first or second home. It does not have a repayment floor or any arrangement or early repayment fee. And the only collateral is the property.
Bankinter is firmly committed to being leader in this market, after increasing its number of new mortgages threefold in 2014.
Bankinter has once again renewed its offer of mortgage products, with a substantial improvement to the conditions of its variable interest mortgage loan. From now on, the bank is to propose a fixed interest rate of 2% during the first year compared with its former 2.50%; and for the rest of the mortgage period, a spread on Euribor as low as 1.50%, compared with its former spread of 1.70%.
In order to be granted this spread of 1.50% over the Euribor, customers need to take out a products package, which taken together allow customers to achieve this spread: payment of their salary into the account with three direct debits, and also taking out life and home insurance. For those who do not take out these three products, the spread increases by 0.5% if their salary is not paid directly into the bank account, 0.6% if life insurance is not contracted, and by 0.1% if home insurance is not contracted.
The minimum household income remains at 2,000 euros a month.
Bankinter's variable rate mortgage can be arranged for a term of up to 30 years. It has no repayment floor, and there are no arrangement or early repayment fees. This, in addition to the spread and the initial fixed rate, makes it one of the most competitive mortgages on the market.
The mortgage can be granted for both first and second homes, the difference being that in the first case, the amount of the loan cannot be in excess of 80% of the appraisal value of the property, while in the second case, it is limited to 70% of the value.
The mortgage includes special conditions for customers aged under 35. For these customers Bankinter undertakes, by means of a certificate, to maintain the EURIBOR applied at the time of signing for three years, passing on the benefit of any reductions in the rate in the first two annual revisions, but not the effect of any increases.
Bankinter's new mortgage loan can be contracted on the same financial terms as an "Hipoteca Sin Más" mortgage, i.e. using the mortgaged residence as the only collateral.
In 2014, Bankinter's new mortgages totalled €1,550 million, tantamount to a threefold increase against the previous year and reaching a share of 7% in the new mortgages market. The entity has also kept the net balance of its residential mortgage portfolio practically unchanged during this period.