Bankinter lowers the price of its fixed and mixed-rate mortgages for the second time this year
The bank is lowering both mixed and fixed interest rates on mortgages by 20 basis points.
The new fixed rate on 15-year mortgages now stands at a competitive 1.85%.
Bankinter has decided to lower mortgage prices for the second time this year in order to improve its offer of this type of loan. In doing so, the bank has reduced by 20 basis points the interest rate on its fixed rate mortgages and by between 10 and 15 basis points on the fixed tranche of its mixed-rate mortgages. These new prices have just become effective. The previous price reduction took place in March.
The interest rate on 15-year fixed-rate mortgages now stands at 1.85%, down from 2%. Furthermore, the interest rate on 10-year mortgages is reduced from 1.70% to 1.55%. As for 20-year loans, the interest rate has dropped from 2.25% to 2.10%. For 25- and 30-year mortgages, interest rates now stand at 2.25% and 2.35% respectively.
Mixed-rate mortgages have fixed interest tranches of 1.90% for 10 years, 2.15% for 15 years and 2.30% for 20 years.
Borrowing at a fixed interest rate will give homebuyers the advantage that the payment instalments they must make will remain stable over the term of the loan, irrespective of any changes in the Euribor, a variable benchmark. The maximum term for fixed-rate mortgage transactions is 30 years.
As regards mixed-rate mortgages, it is important to remember their two different tranches: a fixed-rate tranche in initial years and a variable-rate tranche tied to the Euribor, plus a spread. The maximum term on mixed-rate mortgage transactions, with the sum of the fixed tranche and the variable tranche, is 30 years.
To obtain these prices for Bankinter fixed and mixed-rate mortgages, customers must agree to acquire a package of products: payroll account, professional account or ‘non–payroll’ account (interest-bearing accounts with a 5% AER the first year and a 2% AER 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, loan rates may increase.
Both types of mortgage can be taken out by individuals residing in Spain for first and second residences.
Bankinter’s mixed and fixed-rate mortgages have a 1% arrangement fee with a 500 EUR minimum and an early repayment charge of 0.5% for the first five years of the loan term and 0.25% thereafter, if the loan is totally or partially repaid and/or assumed by another financial institution. There is also a 0.75% interest rate risk charge that applies only in the event an early repayment causes the bank to incur losses.
Customers can find more information on the Bankinter website, where they can also run a simulator:
https://bancaonline.bankinter.com/simuladorHip/simulador-hipoteca.xhtml
