19 January 2015 – Cinco Días
The 2015 battle for mortgages has only just begun. ING Direct has been quick to react to the new wave of mortgage cuts just days after Kutxabank dropped a bombshell by cutting the spread on its mortgages to 1%, to become the cheapest in the market.
From today, the Dutch institution is offering a spread of 1.49% above Euribor, down from its previous rate of 1.69%, to place its Hipoteca Naranja amongst the most attractive products in the market once more, alongside offers such as the One-e, which allows borrowers to lower their spread to 1.50% above Euribor by taking out more products with the entity.
Moreover, with this tactical move, ING overtakes Banco Santander, which recently reduced its spread from 1.79% to 1.69%, with a fixed rate of 2.45% for the first year.
ING has kept the other conditions of its mortgage loans the same, with no initial rate, no interest rate floor and no commission. Antonio Cuadros, Director of Financing and Insurance at ING Direct España notes that “with this price decrease, we want to become the option of choice for customers seeking financing”.
Experts say that 2015 could become the year in which we see spreads of around 1% as financial institutions join the war to supply mortgages.
Original story: Cinco Días (by M. Calavia)
Translation: Carmel Drake