2023-10-21 22:44:21
Beyond the direct debit of the payroll, the contracting of insurance continues to be the main hook that banks offer their clients as a way to reduce the cost of a mortgage, whether variable, mixed or fixed, subsidizing the interest rate they apply if contracted. one of these products.
After the entry into force in 2019 in Spain of the mortgage contract law, banks cannot generally force the contracting of linked products for the granting of mortgages, but they can offer them as an alternative so that the client pays a lower interest .
It is common for banks to offer a discount on the differential they apply or the interest in exchange for contracting certain products, such as insurance, with a company designated by the entity itself. Consumer organizations such as Asufin always recommend comparing with policies from other insurers. .
Along the same lines, the Bank of Spain advises users that before making any decision they carefully assess the cost of the insurance offered and the future relationship they expect to have with the bank and, based on this, decide if they are really interested in contracting it with them. or on the contrary, look for another alternative.
96% of mortgages are subsidized if the client directs their payroll to the entity, but beyond employment income, banks also offer to lower the loan if the client takes out home insurance in almost 90% of cases, and about 80% if you opt for life insurance.
Beyond the direct debit of the payroll, the contracting of insurance continues to be the main hook that banks offer their clients as a way to reduce the cost of a mortgage, whether variable, mixed or fixed, subsidizing the interest rate they apply if contracted. one of these products.
After the entry into force in 2019 in Spain of the mortgage contract law, banks cannot generally force the contracting of linked products for the granting of mortgages, but they can offer them as an alternative so that the client pays a lower interest .
It is common for banks to offer a discount on the differential they apply or the interest in exchange for contracting certain products, such as insurance, with a company designated by the entity itself. Consumer organizations such as Asufin always recommend comparing with policies from other insurers. .
Along the same lines, the Bank of Spain advises users that before making any decision they carefully assess the cost of the insurance offered and the future relationship they expect to have with the bank and, based on this, decide if they are really interested in contracting it with them. or on the contrary, look for another alternative.
96% of mortgages are subsidized if the client directs their payroll to the entity, but beyond employment income, banks also offer to lower the loan if the client takes out home insurance in almost 90% of cases, and about 80% if you opt for life insurance.
At the beginning of October the average interest on a fixed mortgage in Spain was 4.48%, but by contracting up to four products, which is what was required in most entities to qualify for the maximum bonus, the interest dropped to 3. 29%, according to data from the comparator kelisto.es.
In the case of variable mortgages, the average rate was Euribor plus 1.54% and, generally, if the client contracted five products they would obtain the maximum bonus and would pay Euribor plus a differential of 0.67%.
As for the mixed ones, they showed that the average interest was 3.79% in the fixed period and Euribor plus 1.52% in the variable period, although with the maximum link, which is achieved by contracting four products, the interest dropped to 3.1% and Euribor plus 0.74%.
In any case, although the mortgage law generally prohibits the linked contracting of products, it contemplates the possibility that the bank requires the client to subscribe to certain insurance to grant the mortgage, such as, for example, payment insurance or insurance. damage.
However, the Bank of Spain remembers that this type of coverage can be contracted from another entity without the bank worsening the conditions of the loan.
At the beginning of October the average interest on a fixed mortgage in Spain was 4.48%, but by contracting up to four products, which is what was required in most entities to qualify for the maximum bonus, the interest dropped to 3. 29%, according to data from the comparator kelisto.es.
In the case of variable mortgages, the average rate was Euribor plus 1.54% and, generally, if the client contracted five products they would obtain the maximum bonus and would pay Euribor plus a differential of 0.67%.
As for the mixed ones, they showed that the average interest was 3.79% in the fixed period and Euribor plus 1.52% in the variable period, although with the maximum link, which is achieved by contracting four products, the interest dropped to 3.1% and Euribor plus 0.74%.
In any case, although the mortgage law generally prohibits the linked contracting of products, it contemplates the possibility that the bank requires the client to subscribe to certain insurance to grant the mortgage, such as, for example, payment insurance or insurance. damage.
However, the Bank of Spain remembers that this type of coverage can be contracted from another entity without the bank worsening the conditions of the loan.
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