The bargain offered by the entity aiming at calling clientele´s attention as the cheapest option for buying a house on the market assumes to decrease the differencial in regard to Euribor of 2%. By now only Bankinter has applied such terms.
However, like with all mortgages, one shall not only look at the 1.99% added to Euribor. One must remember that in the first year the differential equals to +2,95%, let alone other determinants.
On its website Santander claims that the amount of the mortgage payment cannot be higher than 80% of the valuation or the first house purchase price and higer than 70% in case of a second house. Moreover, the maximum period for the mortgage will be 30 years for the first and 25 years for the second dwelling.
In order to enjoy the terms and conditions, the clients are ought to directly deposit their salary (or the sum of the borrowers´salaries) of an amount greater than 2.500 Euros or in case of being self-employed, the social insurance. Therefore, one shall do the shopping using 4B or Visa cards issued by the bank for more than 500 Euros and pay at least 9 receipts through the account where the loan has been deposited 3 months before the revision.
Finally, together with the New Santander Mortgage a client is obliged to take out a multi-risk home insurance from Aegon Santander Generales, Seguros and Reaseguros (General, Insurance and Reinsurance). In return, the Cantabrian bank gives an amount equivalent to insurance premium for the first year. The offer is valid by April 30th.
What is more, Santander explains that if a client does not meet the related requirements, the amount will equal to Euribor +2.99%, althought in the first year it will be also of 2.95%. In any case, the mortgage does not demand opening fee.