Bankinter lowers the price of its fixed and mixed mortgages

Bankinter is improving the terms of its mortgage offering. The bank has decided to lower its prices for fixed-rate mortgages by 20 basis points as well as the fixed tranche of mixed-rate mortgages by 30 basis points.  

Therefore, interest rates on fixed-rate mortgages will stand at 1.55% over 10 years; 1.90% over 15 years; 2.10% over 20 years; 2.25% over 25 years; and 2.35% over 30 years. Meanwhile, mixed-rate mortgages will bear interest rates of 1.85% over 10 years; 2.05% over 15 years; and 2.20% over 20 years.

The maximum term on fixed-rate mortgages is 30 years.

Fixed-rate financing gives home buyers the advantage of stable repayment rates that will not change over the term of the mortgage, irrespective of any shifts in the Euribor.

Mixed-rate mortgages have two tranches. The first tranche involves a fixed interest rate during the initial years of the loan. The second tranche has a variable interest rate indexed to the Euribor, plus a spread. With these fixed and variable tranches, the maximum term on mixed-rate mortgages is 30 years.

To obtain these prices for Bankinter fixed and mixed-rate mortgages, customers must agree to take on a package of products: a Cuenta Nómina payroll account, a Cuenta Profesional account or a Cuenta No-Nómina non-payroll account (an interest-bearing account with a 5% AER the first year and a 2% APR the second year for new customers); a life insurance policy taken out for the full loan amount; as well as a home insurance policy. If customers do not acquire any of these products, they may see their rates increase. Individuals who reside in Spain may apply for both types of mortgage in order to purchase a first or second residence.

Bankinter’s fixed and mixed-rate mortgages have a 1% arrangement fee with a 500 EUR minimum. They also have an early repayment charge of 0.5% for the first five years of the loan term and 0.25% subsequently if the loan is totally or partially repaid and/or assumed by another financial institution. There is also a 0.75% interest rate risk fee that applies only in the event an early loan repayment causes the bank to incur capital losses.

Recently, Bankinter included within its fixed and mixed-rate mortgage offering the possibility of taking out the Hipoteca Sin Más mortgage, a non-recourse loan under contract without any additional surcharges. 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). Individuals residing in Spain with a monthly income of more than 2,000 euros are eligible to take out this mortgage.

For online information about fixed and mixed-rate mortgages:

https://www.bankinter.com/banca/hipotecas-prestamos/hipotecas/hipoteca-fija

https://www.bankinter.com/banca/hipotecas-prestamos/hipotecas/hipoteca-mixta