The Best Mortgages in the Market

1/04/2014 – Expansion

Real estate sector starts to show signs of revival. Housing prices seem to have hit the bottom or if not, they are very close to. In order to gain interest margin and more customers bond by credits, banks compete on the mortgage market (…). Also, yearning to shed their property ballast, they launch special offers (interest rate, term, financed price percentage) on their own real estate.

In general terms, differential applied on Euribor (a benchmark for majority of mortgages in Spain) is set by 50 to 150 points below determined reference for non-subisidized houses.

Moreover, term and amount of money stated in the loan contract are more attractive. From granting 80% of overall property price, now banks begin to finance 100% of the value in case of problematic assets. When it comes to term, they prolong it to 40 years for an ordinary loan and 30 years for a non-subisidized house.

Sabadell is among the most active sellers and landlords. Its real estate Solvia applies an interest rate of 3.25% in the first year and 1.25% above Euribor for the rest of the time, provided that a customer deposits salary and buys a life, house and payment insurances. (…). During the first three months of the year, the bank granted 3.000 loans (by 43% more than a year before).

The strategy undertaken by Bankia for the real-estate-owned asset sales seems one of the most competitive in the market. The bank calculates Eubibor plus 90 basic points and finances entire transaction (given it does not exceed the appraisal price) and allows a 40 year term. (…) Bankia transferred 90.000 properties valued at more than €22 billion to Sareb.

Also, Popular has got an interesting mortgage offer. Its Aliseda loan sets interest rate at 0.90% over Euribor in the first year and after at 1.25% above the benchmark. Moreover, the bank does not require opening fees and permits a qualifying period of 24 months. In December 2013, the group sold management of Aliseda to Värde Partners and Kennedy Wilson.

Altamira, the real estate firm of Santander, has been boasting since long of having the best offer with an interest rate of 2.25% (2.95% on non-subsidized house financing) in the first year and Euribor plus 1.75% for the following 24 years.

Bankinter granted credits worth of  €243 million in the last quarter of 2013, by 2.3 times more than in the previous quarters. The bank´s fixed rate is between 3.90% and 4.20% (first year) and 1.95% over Euribor after one year. Obviously, on condition that a customer deposits salary with three receipts and buys life and house insurance.

Mortgages of BBVA are the most demanding in price. For its REO houses, the bank sets rate at 2.45% plus Euribor. For non-subisidized dwellings it gives an option to choose a term between 1 and 5 years at fixed interest rate of 4% and 5%. Later on, it applies from 2.5% to 4.5% points over Euribor (maximum 60 point bonus).

 Servihabitat, formerly belonging to CaixaBank offers tremendously linked mortgages. Joint loans may be up 4.90% and after one year it becomes  Euribor + 2o3 points. Fixed rate oscilates between 5% and 5.5%.

Catalunya Banc transferred 3.000 units worth of €6.6 billon to Sareb. The Catalonian group has got special offers for its 2.800 properties on sale.



Original article: Expansión (Ana Antón)

Translation: AURA REE