Bankinter : lowers its spread on variable-rate mortgages to 0.99%

Bankinter is updating its mortgage offering, this time with significantly better terms for its variable-rate mortgages. The bank's new proposal for this type of mortgage is centred on a first-year nominal fixed interest rate set at 1.50%, after which the interest rate becomes the Euribor rate plus a spread of 0.99%. This will be a substantial reduction in previous spread of 1.20%.

The mortgage's other terms and conditions, such as the 1% arrangement fee, will remain unchanged. It also does not have any total or partial early cancellation fees.

Under these new conditions, its variable AER will be 1.75% based on current market conditions. This is 20 basis points down from the previous rate of 1.95%. Given its variable base rate, the total interest on the loan is updated regularly based on shifts in the Euribor rate.

Bankinter's current offering lets customers take advantage of this 0.99% rate if they choose to take out the following products: a Cuenta Nómina payroll account, a life insurance plan and a pension plan (or an ESPV for Basque Country or Navarre residents).

Customers may apply for a type of variable-rate mortgage to purchase a first or second residence with maximum payback period of 30 years. For first residences, customers can obtain up financing for up to 80% of the lesser of the property's appraisal value or the purchase value. Financing for second residences is capped at 60% of the smaller of those two values.

For example, for a 25-year 150,000-euro mortgage, customers taking advantage of this offer would pay monthly instalments of 599.90 euros. At the current Euribor rate, monthly instalments after the first year would be 553.65 euros. This Euribor + 0.99% will be revised annually to adjust to yearly changes in the Euribor.

This new Bankinter mortgage can be taken out under the same financial terms of the Hipoteca Sin Más mortgage with the property pledged as the sole guarantee of the loan.