The bank faces the final stretch of the year mired in the mortgage war. After the months of activity stoppage caused by the coronavirus crisis, the financial sector returns to the fray in autumn with very competitive offers.
In the case of fixed-rate loans, which have set a contracting record in recent months, we find up to five alternatives that allow financing up to 80% of the purchase price of the main residence, without an opening commission and with a term 30-year return. All have an interest rate lower than the historical average of the Euribor, although with conditions. We review from the hand of the idealista / mortgage comparator the main characteristics of each of them:
The fixed-rate loan for the purchase of BBVA’s habitual residence is subject to a interest rate of 1.45% (2.32% APR). It is the lowest in the ranking, although including these bonuses: domicile the payroll, contract home insurance with the entity and also life insurance. For a mortgage of 150,000 euros and a repayment term of 30 years, these conditions translate into a monthly payment of about 514 euros.
In the event that the client is not interested in direct debit payroll and take out insurance, the interest rate goes up to 2,45% (2,93% TAE), higher than those currently offered by Evo and Openbank without bonuses.
Like the other offers, this mortgage does not have an opening commission, although the client must assume a penalty in the event of a early amortization, either partial or total. The commission to be paid in this case is the one set by the mortgage law that came into force in June 2019: 2% during the first 10 years and 1.5% thereafter.
Evo’s best offer at a fixed rate and for a term of 30 years is subject to an interest rate of 1,55% (1,91% TAE), which translates into a fee of about 521 euros for an amount of 150,000 euros. Although this amount is somewhat higher than BBVA’s, in this case The great advantage is that the client does not need to direct the payroll or take out insurance. That is, the interest remains intact even without a bonus.
And if that was not enough, It does not establish an opening or early cancellation commission, either partial or total, and establishes the possibility of having two free insurance for the first loan holder. However, its main disadvantage is that Evo is adopting a restrictive risk policy when it comes to attracting new customers.
Openbank, Santander’s digital bank, enters the list of the most competitive 30-year fixed mortgages of the moment with a loan subject to a 1.75% interest (1.94% APR), which means paying around 536 euros per month for a mortgage of 150,000 euros.
However, to achieve these conditions, the client must direct the payroll and take out home insurance with the entity. And, in the absence of these bonuses, the interest rate to pay is a 2.15% (or 2.16% TAE).
Among the advantages of this loan is that it does not establish an opening commission or partial amortization, although it does penalize the total cancellation of the loan: the customer must pay 2% if it occurs in the first 10 years or 1.5% thereafter. In addition, and although after the entry into force of the mortgage law the client must assume the cost of the home appraisal and the copies of the deed requested, Openbank undertakes to pay the cost of the home appraisal subject to the financing operation.
Like Openbank, Liberbank’s most competitive 30-year fixed loan has a interest rate of 1.75% (although in his case the APR reaches 2.18%), as long as the client domiciles the payroll and contracts the home insurance with the entity. With these conditions, the monthly installment to pay for a loan of 150,000 euros would be about 536 euros.
On the other hand, without bonuses, the loan becomes more expensive compared to its competitor, since it reaches the 3,2% (3,63% TAE), and it becomes the highest interest rate in the ranking.
Like the other 30-year fixed mortgages, it frees the client from paying an opening commission, although it does penalize early repayment, either partial or total. Like BBVA, the commission is that established by the regulations (2% in the first 10 years of the life of the loan, and 1.5% thereafter). Another of its disadvantages is that it requires a monthly income of more than 3,000 euros from the mortgaged.
Bankia is the fifth most prominent entity in the ranking of the best 30-year fixed mortgages of the moment, although with a higher interest rate. Specifically, the interest is 1,85% (2,16% TAE), which corresponds to a fee of 543 euros per month for a loan of 150,000 euros.
In addition, this interest is subject to the direct debit of the payroll in the entity, and provided that the income exceeds 3,000 euros per month. If you do not want (or be able to) benefit from this bonus, the interest rate would reach the 2,85% (3,09% TAE), being the second highest of the five offers analyzed without a bonus and the highest, including the bonus.
However, as positive points it highlights that It does not establish an opening commission or an early cancellation fee.
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