2024-10-13 07:52:00
BBVA has decided to adjust its mortgage offering by reducing the interest on its fixed rate loans to 2.75% TIN(Nominal Interest Rate) for mortgages up to 30 years, reduction of 25 basis points. This reduction replicates the recent interest rate cut European Central Bank (ECB)reaching levels that the entity had not reached since 2020.
With this adjustment, the bank went from offering 3% to 2.75% in its bonus offer. As for mortgages without bonuses, interest has also decreased, going from 4% to 20%. 3.75% TINwhich translates into significant savings for customers. According to estimates by Kelistoa financial comparator, future mortgage holders will be able to save on average 6,000 euros for the entire duration of the loan, depending on the amount and repayment period.
However, those looking for a short-term mortgage will be able to access even more competitive interests. For example, if the loan is repaid over a period of 15 years and the client meets all bonuses, the interest rate can reach 2.65% TIN. In this case, although the interest is lower, the monthly payments will be higheras they are spread out over a shorter period of time. For those who prefer not to comply with the connection conditions, the interest rate increases by 3.65%.
Conditions for accessing the most convenient mortgage
To enjoy the 2.75% TINBBVA requires the customer to comply with a number of connection conditions. Among these, the need for a direct deposit exceeding 600 euros or a pension exceeding 300 euros stands out. Additionally, the customer must take out two insurance policies with BBVA: one for home insurance and another for payment protection.
This move by BBVA reflects a competitive scene where more and more financial institutions are lowering interest rates on their mortgages to attract new customers. The “mortgage war”, as several analysts have defined it, is intensifying in a context of lower interest rates in the eurozone, which forces banks to offer better conditions to attract those seeking financing for the purchase of a house.
Banca March and Unicaja: rivals in the mortgage battle
BBVA isn’t the only entity to have lowered the price of its mortgages. Other bodies, e.g Bank of Marchthey have also cut interest rates to compete in this increasingly aggressive market. In the case of Banca March, the institution has reduced its mixed mortgage, offering a 2.20% TIN during the first four years ea Euribor +0.60%for the rest of the period, as long as the customer respects the bonuses. Without these conditions, the subsequent variable interest could go up to Euribor +1.20%.
Banca March has also improved the conditions of its people variable mortgageoffering the same during the first year 2.20% TIN and then to Euribor +0.60% if all constraints are satisfied. As in the previous case, if the conditions are not respected, the interest rate could rise up to Euribor + 1.20%.
Another entity that has entered this price war is Uniquewho has chosen to attract customers by offering up to 620 euros to those who keep their paycheck or pension domiciled with them. However, to access this offer, the customer must also take out life and non-life insurance and the capital insured in the life insurance must cover at least the 50% of the capital awaiting amortization of the mortgage.
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