Bankinter lowers the price on its fixed and mixed mortgages, irrespective of maturity date
The bank will lower the previous price by 10 basis points on all types of these mortgages, which have terms of up to 30 years in the case of fixed mortgages; and up to 20 years in the case of mixed mortgages.
It is the first price cut the bank has implemented this year in these types of mortgage.
As of today’s date, Bankinter will lower interest rates on its fixed-rate mortgages and on the fixed-interest portion of its mixed-rate mortgages by 10 basis points. This price reduction, which will now cover all mortgage maturities, is the bank’s first rebate on these products since November.
With this new development, fixed-rate mortgages at Bankinter will stand as follows: 1.65% over a 10-year repayment period; 1.95% over 15 years; 2.15% over 20 years; 2.20% over 25% years; and 2.25% over a maximum repayment period of 30 years.
On the other hand, its mixed-rate mortgages, which consist of a fixed interest rate period followed by a variable interest rate until maturity, will be subject to 1.90% interest over a 10 year repayment period; 2.10% over 15 years; and 2.20% over 20 years. The spread on the variable component 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.
To obtain these prices for Bankinter’s fixed-rate mortgages, customers must take out a package of other products in addition to their mortgage: a Cuenta Nómina payroll account, a Cuenta Profesional account or a Cuenta No-Nómina non-payroll account (interest-bearing accounts with an AER of 5% during the first year and 2% during the second year, up to a maximum of 5,000 euros for new customers), a life insurance policy for 100% of the mortgage amount and a home insurance policy. 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.
Variable-Rate Mortgage at 0.99%
In February 2018, Bankinter substantially improved its variable-rate mortgage offering with a fixed nominal interest rate of 1.50% during the first year and a Euribor+0.99% rate thereafter, making for an equally competitive product.
Bankinter’s fixed and variable-rate mortgages can be taken out as a ‘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.