The bank is accelerating with its objective of shelving the mortgage disaster of 2023, in which, on average, 18% fewer loans were granted to buy a house than the previous year due to the rise in interest rates. Although in some entities, the drop was 45%. Thus, so far in 2024, CaixaBank, Santander, BBVA, Sabadell, Abanca, Cajamar, EVO Banco, Ibercaja…more than a dozen entities have lowered the prices of their fixed mortgages, some and even several to reactivate the market and recover pent-up demand.
But the latest sales Sabadell and BBVA have taken the interest they charge for their fixed mortgages below 4% APR (the Annual Equivalent Rate includes the interest on a loan plus expenses and commissions) something that until now had only been achieved Santander, Bankinter and Evo Banco. Which means that entities are already financing below the price of real money (at 4.5%) and the Euribor, which closed March at 3.7%.
Specifically, the Catalan bank has reduced the TIN of its subsidized fixed mortgage from 2.8% to 2.75%, and the APR, from 4.53% to 3.87%. Which implies a drop of 0.66%. Subsidized mortgages are cheaper because they require you to contract an additional product. Sabadell, specifically, requests payroll and takes out life and home insurance to apply that discount.
BBVA, which already had one of the most competitive mortgages on the market by offering an interest rate of 4.12% on its 30-year fixed mortgage, It also lowers it now to 3.83% TAE. These two entities, therefore, align with Bankinter, its digital bank EVO and Santander, which, in previous reductions, had already brought the interest on their fixed loans below 4% APR.
Specifically, at 3.89% Bankinter on its 30-year mortgage and 3.9% in the case of the 25-year mortgage; and at 3.39% APR for both Santander and Evo Banco, the latter two currently being the most competitive among the large banks. In any case, market sources indicate that the official prices that banks display on their websites, they tend to improve when entities negotiate with the interested party.
More now, that the mortgage war is accelerating in anticipation that interest rates begin to fall from the current 4.5% starting in the summer. The European Central Bank, which sets the price of money, paused rate increases in September after ten consecutive increases to curb inflation. Rates are now expected to be cut from June.
CaixaBank also lowers its prices
In this context, CaixaBank has also made improvements in recent days and has raised the TIN of its 30-year Fixed CasaFácil Mortgage from 3.3% to 2.9%. And the APR, from 4.89% to 4.1% with maximum bonus.
The entity, therefore, still maintains the interest above 4% such as Unicaja (4.5% APR), Abanca, which offers a 4.8% APR for 15 years with its Mari Carmen mortgage, and ING, which places the APR for its 25-year fixed mortgage at 4.33%.
2024-04-08 03:52:42
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