Bankinter : improves the price of its 10 and 20-year fixed-rate mortgage loans

Bankinter is improving the price of its fixed-rate mortgages, with a 10-basis point reduction in 20-year fixed-rate mortgages since its last price revision; and a 0.05% reduction in 10-year fixed-rate mortgages. For other term mortgages, the bank will maintain the prices put in place since September, when it had cut prices on all fixed-rate mortgages.

With this new shift, Bankinter's fixed-rate mortgages would remain unchanged: 1.50% over a 10-year repayment period; 2.00% over 20 years; 2.25% over 25% years; and a 2.35% interest rate over a maximum of 30 years.

These prices make Bankinter's mortgage offering one of the most competitive in the mortgage market, as customers' demand for this type of product continues to increase.

For home buyers, fixed-rate financing provides the advantage of paying a stable rate during the life of the loan, regardless of the Euribor's performance, a variable benchmark.

To obtain these prices for Bankinter's fixed-rate mortgages, customers must take out a package of other products as well: a Cuenta Nómina payroll account, a Cuenta Profesional account or a Cuenta No-Nómina non-payroll account (an interest-bearing account with an AER of 5% during the first year and 2% during the second year, up to a maximum of 5,000 euros for new customers), a life insurance policy for 100% of the mortgage amount and a home insurance policy. Although customers have the option of taking out these discounted products, not taking them out may increase their interest rates. Bankinter's fixed-rate mortgage is available to individuals residing in Spain to purchase their first and second home.

They are subject to a 1% arrangement fee with a 500 euros minimum; and carry an early repayment charge of 0.5% for the first five years of the loan term and 0.25% subsequently if the loan is totally or partially repaid and/or assumed by another financial institution. There is also a 0.75% interest rate risk fee that applies only in the event that early repayment of the loan causes the bank to incur capital losses.

'Hipoteca sin más'

In mid-September, Bankinter included within its fixed- and mixed-rate mortgages the option of taking out the 'Hipoteca sin más' mortgage. This mortgage is a non-recourse loan under contract without any additional surcharges. Therefore, if a mortgagor fails to keep up with loan payments, they will only be required to relinquish the asset guaranteeing their loan (e.g., the mortgaged residential property). Individuals residing in Spain with a monthly income of more than 2,000 euros are eligible to take out this mortgage provided that it is intended for the purchase of a primary residence.