Barclays Starts Off With Euribor + 1.85% Mortgage

4/04/2014 – El Confidencial

Barclays made its mortgage offer far more attractive by launching a new loan at interest rate equal to euribor + 1.85%. This is the second best mortgage offer in the market right now.

The loan has no ground clause. During the first year, an euribor + 2.85% rate will be operating, for the rest of the years becoming an euribor + 1.85%. The Annual Percentage Rate (APR) will be equal to 3.4%. To obtain the mortgage, one shall deposit salary of 2.500 Euros or more and buy home and life insurance.

In order to come up with solutions for its Premier client needs, the British bank created Barclays Premier Universe. The mortgage finances 100% of the total property cost when the client has got more than 100.000 Euros in  the bank and at least 5.000 Euros of monthly income.

The conditions ensure the mortgage the second position in the best mortgage ranking, just behind the Caja Sur´s Euribor + 1,25% mortgage (2.50% in the first two years), defraying 80% of dwelling cost. However, it also requires purchase of high-loyalty products such as insurances and credit cards (…).

There are several more banks offering mortgages at euribor plus an interest rate below 2%. For instance, Bankinter was the one to provoke the low-rate race with its Hipotica or Hipoteca Sin at euribor +1.95% and no opening fees. However, one must read the bank´s terms and conditions on this mortgage to discover the hidden costs that all summed up, expose the real expense of the mortgage. (…).

The next entity currently offering an attractive loan is Banco Santander with its euribor + 1.99% mortgage. (…) This mortgage, though, is also far from perfection as it demands meeting a great deal of requirements to obtain such interest rate, let alone the lost of high-loyalty products to be bought.

Other noteworthy banks in terms of attractive mortgage granting are ING Direct (euribor + 1.99%) and Deutsche Bank (euribor + 1.95%) (…). However, looking closely at their offers, one learns that although the first has got neither opening fees nor ground clauses and gives the maximum term of 40 years for 80% of appraisal value, it involves many other products. Similarly, the German bank´s HipoteCambio DB sets the first year interest rate at 3% (later on 1.95%) but only in exchange for two cards (min. €3.000 spent a year), insurances and 3 salary deposits.



Original article: El Confidencial (by J. Checa)

Translation: AURA REE