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Kutxabank Crushes Mortgage Market With 1% Spread

9/01/2015 – Expansion

The new year revives fierce competition on the mortgage market. Kutxabank announced yesterday it had lowered its spread to 1% over the Euribor.

The good deal becomes available after taking out all kinds of insurances (home, life, car) and payment cards, salary deposit and a pension scheme. Unlike other attractive mortgages found presently in the market, this loan finances only 75% of the property’s value, and not 80%.

Sources from the entity explained that although Kutxabank introduced many novelties in its mortgage offer last year, this move was made to enhance access to home-purchase financing. In fact, the bank discounted some requirements so that the young under 35 could enjoy the low rate.

Furthermore, minimum household income shall amount to 3.000 euros. Shopping paid by cards shall equal to at least €3.600 annually. Pension scheme translates into paying a minimum of €2.000 annually.

Santander and ING are the entity’s main competitors with their Euribor + 1.69% spreads.

 

Original story: Expansión (by M. R.)

Translation: AURA REE