3 March 2015 – Expansión
Banco Sabadell has reaffirmed its commitment to fixed rate mortgages. The bank chaired by Josep Oliu has decided to convert its fixed rate mortgages into its star home loan product, and it will therefore recommend that its clients opt for fixed rate products to ensure the stability of their mortgage payments over the long-term. 16% of the bank’s new mortgages are now fixed rate, compared with 10% in 2014.
To demonstrate its commitment, Sabadell has just reduced the interest rate on its 20-year fixed rate mortgage from 3.7% to 2.90%. If the client prefers a 30-year term, a fixed rate of 3.10% will apply.
During the real estate boom, people paid rates of up to 4.75% when Euribor was at 4.1% in 2007.
Other entities, such as Bankinter, Bankia and BMN are also backing fixed rate mortgages, offering interest rates of between 3.4% and 4.60%. CaixaBank offers a rate of between 2.5% and 3%, depending on the degree of connection (of the client with the bank’s other products).
Original story: Expansión (by S. Saborit)
Translation: Carmel Drake