ING Direct Reduces Its Mortgage to Compete With Santander & Bankinter

23/01/2014 – Cinco Días

The battle of lowering the mortgage rates goes on. ING Direct reacted to the new campaign by Banco Santander (that reduced its mortgage by 1.99% over the Euribor few days ago) and has done cuts in its famous “Orange Mortgage” (“Hipoteca Naranja”). The Dutch institution lowers the differential added to the Euribor index also by 1.99% and the offer is destined both for its clients and the new clients.

By now, the best differential that ING Direct has been offering to its regular customers was 2.29% and 2.69% to the new ones. But now the bank only requires having an account with or without salary to obtain the 1.99% + Euribor mortgage. The maximum financing in regard to the appraisal value for the first flat will be of 80% and 75% for the second house, with the amortization term up to 40 years. As usual, the company offers no commission fees. However, one must sign not only the mandatory fire insurance, but also house and life insurances. (…)

The first bank to lower its mortgage differential was Cajasur that currently offers the best conditions in the market with 2.5% of the startup rate and 1.25% differential over the Euribor. (…).

Then Santander caught up with the idea and launched its new 1.99% + Euribor mortgage with the fixed rate of 2.95% in the first year (…).

Last year, Bankinter was the only entity that dared to go against the flow and released its “No More Mortgage” (“Hipoteca Sin Más”) under 2% + Euribor (1.95%). (…).

This way Bankinter, Cajasur, Santander and now also ING Direct are the mortgages below the 2% added to Euribor rate, the rest of the institutions do not go under 2.5%.

Source: Cinco Días

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