Bankinter is lowering the price of its fixed- and mixed-rate mortgages in all terms and setting its fixed-rate 20-year mortgage at 1.99%

Bankinter is starting the 2019 commercial year with a substantial decrease in the interest rate of its fixed-rate mortgages and in the fixed tranche of its mixed-rate mortgages.

Albeit it applies to all terms, this decrease is particularly important for 20-year mortgages, one of the most sought-after solutions. The interest rate for this mortgage is now 1.99%, down 36 basis points from the previous rate of 2.35%.

With this change, Bankinter's fixed-rate mortgages will be priced as follows: 1.65% over a 10-year repayment period; 1.90% over 15 years; 1.99% over 20% years; 2.30% over 25 years; and a 2.40% interest rate over a maximum of 30 years.

As for mixed-rate mortgages (consisting of a fixed-rate period and then a variable-rate period until the end of the mortgage's term): 1.90% over a 10-year repayment period; 2.20% over 15 years; and 2.30% over 20 years. The spread for the variable-rate period is still 0.89%.

These prices make Bankinter's mortgage offering one of the most competitive in the mortgage market, as customers' demand for this type of product continues to increase. In the case of Bankinter, around 30% of its new mortgage business in 2018 was at a fixed rate.

The abovementioned prices for fixed-rate Bankinter mortgages are available to customers who arrange a mortgage and a package of products: a payroll account, a professional account or a non-payroll account (interest-bearing accounts with an APR of 5% during the first year and 2% during the second year, up to a maximum of 5,000 euros), a life insurance policy for 100% of the mortgage amount, a home insurance policy and a pension plan or EPSV with Bankinter Seguros de Vida with a minimum annual contribution of 600 euros for the length of the loan.

Although customers have the option of taking out these discounted products, not taking them out may increase their interest rates. Bankinter’s fixed-rate mortgage is available to individuals residing in Spain to purchase their first and second home.

Fees are the same as the Bank has been applying to this type of mortgage for some time: a 1% arrangement fee with a 500 euros minimum; and 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 that early repayment of the loan causes the Bank to incur capital losses.

Variable-rate mortgage at 0.89%.

With regard to variable-rate mortgages, Bankinter has been applying the same price and terms since early October 2018: fixed nominal interest rate of 1.50% for the first year and then Euribor + 0.89%, for an equally competitive product.

Both Bankinter's variable- and fixed-rate mortgage can be taken out as "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 provided that it is intended for the purchase of a primary residence.