Fixed-rate mortgages are not the most popular type of mortgage taken out by those wanting to purchase a home. However, since interest rates have been so low over the last couple of years, the number of people that have opted for this type of mortgage has increased.
And, banks have obviously become more aware of this, as they are now focusing more on fixed-rate mortgages when they launch their new offers onto the market, with a greater number of options now available than ever before.
Whereas before, fixed-rate mortgages were rarely considered by prospective homebuyers, these days they are becoming the preferable choice for many.
And now, Spain’s second largest bank has laid down its cards and brought a new offer to the table, one that is much more competitive than any others currently on the market at the moment.
The new mortgage offer has seen the nominal interest rate (TIN) reduced from 2% to just 1.90% for any mortgage taken out for up to a maximum of 15 years. This is lower than any other rates offered by Spanish banks, who all oscillate between 2.10% and 2.25%.
However, for this to be able to apply to your new mortgage, the bank has put a few requisites in place:
- Wages or pension must be paid into a BBVA account
- Take out a home insurance
- Plus a life insurance or payment protection insurance
- Credit card must be used at least once before the annual revision is due
- At least 600 euro a year must be paid into a BBVA pension plan
- An income of 1,500 euro a month or more
As you can see, while the bank offers the lowest interest rate for fixed mortgages on the market, the client will end up with quite a few obligations, which, if they are not fulfilled, will mean that the TIN could rise to as much as 2.9% for 15 years.
It must also be taken into account that this mortgage will finance 80% of the valuation of a first residence and 70% for a second home. However, during the first six months of taking out this new offer, all clients will be allowed to enjoy the lowest rates. If they then wish to drop some of the requirements, such as taking out a home insurance, for example, the interest rate will go up accordingly after this point.
This type of fixed-rate mortgage is also available for other lengths of time:
- 16-20 years: 2.25%
- 21-25 years: 2.5%
- 26-30 years: 2.75%
As with many other of Spain’s banks, the BBVA has also gone down the route of attracting new clients and ensuring the loyalty of their existing ones via enticing mortgages offers.