Bankinter launches a mixed mortgage, which combines the benefits of fixed-rate and variable-rate loans
The customer is ensured the payment of a fixed fee during a period of their choice up to 20 years, but is able to extend the total life of the mortgage up to 30 years.
The interest rate of the fixed period will be 1.95%, 2.25% or 2.65% depending on the fixed term chosen by the customer: 10, 15 or 20 years, respectively.
Bankinter has boosted its mortgage offer with today's launch of a new mixed mortgage with a 30-year maximum term, which combines a first period, of up to 20 years, in which the customer will pay a fixed interest rate, with a subsequent period up until maturity in which a variable interest rate will be applied.
In the mixed mortgage, which combines the security of fixed-rate loans with the greater repayment period that characterises variable-rate mortgages, the customer will be able to choose the duration of the initial period during which a fixed interest rate will be applied, which will not be affected by market turbulence. The price will depend on the fixed-rate period chosen, fluctuating between 1.95% for terms up to ten years, and 2.65% if it extends to 20 years.
At the end of this period, and until the loan's maturity, a variable interest rate will be applied with the differential specific to these operations.
With this new product, Bankinter intends to respond to the increasingly frequent demand of the customers who request to sign fixed-rate mortgages, benefiting from the low interest rates in place, but who, in many cases, forego this product due to the smaller duration of these loans. With the mixed mortgage now they are ensured a fixed payment for their property during most of the life of the loan, with no scares from fluctuations in the Euribor, while extending the life of their mortgage beyond the 20-year maximum currently permitted for fixed-rate mortgages.
As with the rest of the Bankinter mortgage offers, obtaining that price will depend on the contracting of a package of products which, when subscribed to comprehensively, will enable the above-mentioned interest rate to be acquired: a directly deposited salary, and taking out life insurance and home insurance policies. Failure to contract one of these three products would increase that differential by 0.5% in the case of not having a salary directly deposited, 0.6% for not taking out life insurance, or by 0.1% in the event of not taking out home insurance.
This mortgage loan can be requested both for main and second residences, with the difference being that in the first case, the amount of the loan cannot exceed 80% of the lessor of the two values: purchase price or appraisal value. In the case of a second residence, that loan limit is placed at 60% of the lessor of these two values.
This mixed mortgage has a start-up fee (1%) and it does not have partial or total repayment fee in the variable period. In turn, for the fixed part of the loan there is a partial/total repayment fee of 0.5% in the first 5 years of life and, beyond that period, a fee of 0.25%.
With this new product, Bankinter highlights its strong will to lead the mortgage market, after increasing its volume of new production in the first half of 2015 by 34%, in which it granted 5,523 mortgage loans valued at 906 million euros and achieved a 6% quota on the market of new mortgages.