Bankinter launches a dual mortgage that allows you to contract one part at a fixed rate and another at a variable rate

2023-09-28 20:27:23

Bankinter’s coup d’état in the mortgage market after announcing the launch of a dual mortgage that allows clients to choose from the beginning of the loan what percentage they want in variable mode and what part will be fixed, “each one with its respective particularities” . Thus, the percentage of fixed capital will be amortized at a stable interest rate throughout the life of the loan, while the variable part will be amortized with a fixed exit rate for the first 12 months of the loan and, thereafter, an annually reviewable rate. referenced to Euribor, to which a differential established by the bank would have to be added. The sum of both amounts will make up the monthly mortgage payment.

The client will thus see a single monthly installment charged to their checking account, although the loan information will contain a breakdown of how much of that installment corresponds to the variable tranche and how much corresponds to the fixed tranche, as well as the interest rates applied in each case. . In this way, whoever takes out this type of mortgage will be able to “protect a part of the debt (the fixed tranche) from rate increases”, while “benefiting from eventual rate drops thanks to the variable tranche”, explains the entity.

Specifically, the mortgage holder will be able to define the capital percentages in each type from the beginning and also throughout the life of the loan, balancing said proportion through early repayments. It may also be decided to allocate the amortized capital to reduce the outstanding capital of one of the tranches separately or to both tranches proportionally to the outstanding debt at that time. When repaying, as is usually the case with any mortgage, the client will also indicate if they wish to reduce the payment or term. “The fact that the loan structure itself is configured by the client himself gives this mortgage a maximum degree of personalization in its conditions,” says Bankinter.

The rise in the price of money in the euro zone and, therefore, of the Euribor, both currently above 4%, is one of the reasons for the slowdown in the mortgage market, which at the end of July closed its sixth consecutive month at the lowest and the fifth with double-digit cuts. According to these data, the most up-to-date data available from the National Institute of Statistics (INE), in July 29,223 mortgages on homes were registered in the property registries, 42.2% of them at a variable rate, its highest percentage. since March 2021, and 57.8%, at a fixed rate, which remained below 60% for the first time since April 2021.