Bankinter Launches Most Economical Mortgage With a 1.7% IRD

24/09/2014 – Expansion

Bankinter challenges other mortgages in the market with a new loan for unsubsidized home purchase trimming the variable interest rate from 2.95% to 2.50% during the first year of payment and from 1.95% to 1.70% for the rest of the term.

The mortgage released by the entity chaired by Dolores Dancausa applies both to purchases of the first and the second dwellings, does not include any ground clause or opening fees and it can be approved for 30 years maximum.

Terms & Conditions

The lowest rate on the market may be snapped up after buying a series of loyalty products, such as life and household insurances and making a deposit equal to three monthly salaries. If the life insurance or the deposit refused, the differential rises 1%, whereas if the household insurance not taken, it increases by 0.25%. Moreover, Bankinter reduces the minimum income requirement from 3.000 to 2.000 euros per month.

When the customer is under 35, the mortgage allows to maintain the low differential rate for three succeeding years and to benefit from the declines the index registers after first two annual revisions. At the same time, the mortgage protects the young buyers from rate jumps. The product may be purchased under the name of Hipoteca Sin Más (No-More Mortgage).

With all these conditions, the offer of Bankinter becomes the best option on todays market of Spain.

Other entities also have interesting mortgages for unsubsidized housing purchase. For example, Deutsche Bank comes up with its 1.69% IRD for the first year and 2.50% for the rest. However, the banks opening fee amounts to €400. Santander approves loans with a rate of 1.89% which turn into a fixed 2.85% after one year. ING Direct also sets rate in its Hipoteca Naranja (Orange Mortgage) at euribor plus 1.89%.

EVO Bancos mortgage is considered one of the noteworthy, too. Its Hipoteca Inteligente (Intelligent Mortgage) includes an innovative and unique merit as during the first year the rate applied on it fixes at 2.10% and with the years passing, if euribor goes up, the interest rate will fall.

When it comes to the loan proposed by Sabadell, in the first year the IRD posts 2.90% and in the next it fixes at between 1.70% and 1.90%.

After five years of lending drought and in the circumstances of the real estate market getting back to its feet and rising prices, Spanish banks hope to improve lending and therefore gain on sales of loyalty products.


Original article: Expansión (by M. G. Borraz & A. Antón)

Translation: AURA REE