Bankinter lowers the spread on its variable-rate mortgage to 0.89%
This is Bankinter’s second interest rate cut on its variable-rate mortgage this year since February.
Bankinter is revamping its mortgage offering with considerably better conditions for its variable interest rate mortgage. Its new proposal for this type of mortgage consists of a fixed nominal interest rate of 1.50% during the first year, after which it will become the Euribor+0.89%. This is a 10-basis-point cut with respect to the spread used thus far, making this one of the most competitive offers in the market.
Furthermore, Bankinter will keep the other conditions and features of this product as is: a maximum term of 30 years, a 1% arrangement fee and no early, total or partial cancellation fees.
Under Bankinter’s current offering, customers can benefit from this 0.89% spread if they opt to take out the following additional products: a payroll account, home insurance, life insurance and a pension plan (or a plan from voluntary social welfare entity (EPSV), which is prevalent in the Basque Country). Furthermore, customers are required to have a household income of at least 2,000 euros a month.
Customers may apply for the variable-rate mortgage in order to purchase a first or second residence. For first residence purchases, customers can get financing for up to 80% of the lesser between home’s appraisal value or purchase price. For second residence purchases, this financing limit falls to 60%.
Under these new conditions, the variable AER for a 25-year, 150,000-euro loan will be 1.68%. This new offering would also entail monthly instalments of 599.90 euros during the first year. With the current Euribor, monthly instalments after the first year will be 548.50 euros. As the benchmark rate on this loan may variable, the Euribor rate plus the 0.89% will be revised once a year in order to reflect the current Euribor rate.
The new Bankinter mortgage, with the same financial conditions, can be taken out as a ‘Hipoteca Sin Más’ mortgage or with the property pledged as the only guarantee.
Bankinter’s new mortgage sales in the second quarter of this year amounted to 715 million euros, a 17% increase with respect to the same quarter last year and affording the bank a 5.8% share of the new mortgage market in Spain.