Mortgages Below 2% Are No Novelty Anymore

4/03/2014 – Cinco Dias

Banks´war on the mortgage signing goes on. After the attack of Santander with the Euribor + 1.99% mortgage at the beginning of the year, the idea has been soon seized upon by ING Direct and now other financial institutions join the “below 2%” trend.

Caja España-Duero has overturned mortgage offer and launched the “Hipoteca Net Futuro” mortgage of a 1.95% interest rate, via a 1.35 point reduction. The first year in the “Net Fidelis” mortgage is now charged with 3%, while the next with 1.65%. In turn, “Net Oro” mortgage for new clients offers 2.75% during the first and 1.75% during the following years. “Net Portal Inmobiliario” mortgage of the bank intended for its houses only, includes a 2.75% fixed rate for the first two years and Euribor + 1,85% for the next (up to) 40 years. However, obviously the mortgages are bond with various bonus requirements, such as salary or pension deposit, purchase with credit cards, signing life and household insurances and a pension scheme. (…).

Caja Rural de Granada has just launched the “Hipoteca Libre” mortgage, offering a 1.85% differential rate. The first and the second year is charged with a 2.85% rate. There are no commission fees, however one becomes obliged to deposit their three salaries, buy life and household insurances, pay more than €600 each six months with credit card and create an electronic bank account and an e-mail address. Without meeting the conditions, the rate rises to 3.25%. (…).

Also Novagalicia Banco trimmed interest rates and launched its new “Hipoteca Bonificada” mortgage. Now the bank offers a 3.50% rate in the first year and a 2% one for the rest of the (up to) 30 years, provided that a client buys other products, like a life insurance, a multi-risk insurance for home, payment protection, pension scheme, apart from obvious salary deposit and paying with cards. Otherwise the interest soars up to Euríbor + 2.50%.



Original article: Cinco Días (Miriam Calavia)

Translation: AURA REE