Bankinter lowers interest for 20 yr fixed-rate mortgages to 1.99%
The bank is lowering interest on its all fixed and mixed-rate term mortgages for the second time this year, with a reduction of between 21 and 10 base points.
Today Bankinter will begin to apply a 10-to-21 basis point reduction on the previous interest rates for its fixed-rate mortgages and the fixed tranche of its mixed-rate mortgages. This is the second price cut approved by the Bank, which will apply to all types of term mortgages. It had previously cut prices in April.
Under the new scheme, Bankinter’s 20 yr fixed-rate mortgages will cost less than 2% interest, standing at 1.99%, compared with the their previous interest rate set at 2.20%
For other term mortgages, the fixed interest rate will be: 1.55% over 10 years, versus the previous 1.65%; 1.85% over 15 years (previously 2%); 2.20% over 25 years, a 10 basis-point decrease; and 2.25% over 30 years (versus the previous 2.35%). 30 years is the maximum term granted by Bankinter.
As for mixed-rate mortgages, which consist of a fixed-rate period followed by a variable interest rate until maturity, interest rates will now stand at 1.80% over 10 years and 2% over 15 years, a 15 basis point cut in both cases. Interest on 20 yr mixed-rate mortgages will be 2.20%, compared to their previous rate of 2.30%. The spread in the variable tranche is 0.99%.
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.
These interest rates on Bankinter’s fixed-rate mortgages are available to customers who, in addition to their mortgage, take out a pack of products: the Cuenta Nómina, Cuenta Profesional or Cuenta No-Nómina account (all of which bear interest at 5% AER during the first year and 2% during the second year, up to a maximum amount of 5,000 euros in the case of new customers), a life insurance policy for the full loan amount, a home insurance policy and a pension plan or ‘EPSV’ (with Bankinter Seguros de Vida, a Bankinter Group company, provided that customers contribute a minimum annual amount of 600 euros and keep the policy for the entire life 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.
They are subject to a 1% arrangement fee with a 500 euros minimum; and carry 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.
Bankinter’s variable and fixed-rate mortgages can both be taken out as ‘Hipoteca sin más’ mortgages, which are non-recourse loans under contract and 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.