Expansion / fixed rate mortgages remain a small minority in Spain, but something moves and you see striking deals, such as Kutxabank, Sabadell or BMN.
The Spanish mortgage market is cornered by variable rate loans. Last January, according to the latest data available from the INE, in 100 mortgages were contracted 94% variable rate and only six fixed rate. However, in recent months are seeing some signs that this may change.
In fact, in the last quarter of last year, has not only increased the number of banks that have lent to fixed-rate housing, but has also decreased significantly the interest charged.
According to calculations by Expansión.com on data fees and interest rates sent by banks to the Bank of Spain, seven banks traded fixed rate mortgages between September and December 2014. Barclays ; Sabadell; BBVA; CajaSur; Bankia; Kutxabank and CaixaBank granted this type of mortgage and TAE applied on average was 4.9%. In the first quarter of 2014 were only five banks that sold fixed loans and the average interest rate applied was 6.9%, two points higher than in December.
Most of the entities provided has offered customers the opportunity to opt for a fixed rate mortgage: the product was not in the window, or entity strove to promote it, but it was available if requested by a customer. But fixed-rate mortgages are not for everyone: the initial interest rate is higher with respect to the variable and the maturity is usually shorter, so pay monthly fees are usually higher, as you remember from a bank . Now, however, it seems that something is changing.
Affordable Since early this year, at least three entities have taken to compete in the segment of fixed-rate mortgages. In January, Sabadell opened the ban beginning to market several loans of this type. For a repayment term of twenty years applies an APR of 4.1% and for 30 years 4.18%. To grant the mortgage to twenty years, the Catalan bank requires a minimum income of 3,500 euros per month. In both cases, moreover, is in addition to the payment of salary required, life insurance and home insurance.
The following month it was the turn of BMN, which launched three loans to ten, twenty and thirty years with interest of 3.25%, 3.50% and 3.80% respectively .
Even more aggressive Kutxabank was launched in March mortgage market more competitive fixed rate with an APR that can be lowered to 3.28% if all the conditions required are given linkage, which include the provision of insurance and savings products with the entity.
In the field believe it is likely that other banks are launched to compete in this segment because the fall in prices of flats helps more families can pay cash and ask higher percentages mortgages more small. Yet no one doubts that the variable rate will remain the undisputed star of the Spanish mortgages, at least in the years
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