Santander Bank customers can receive a discount of up to 100 basis points on the annual nominal interest rate, depending on the financial products and services they purchase each year. Among the potential discounts is a reduction if the financed property has a sustainable energy rating. Santander is launching a new flexible discount module for its range of mortgages (fixed, variable, and non-resident) that allows customers to benefit from interest rate discounts throughout the life of the mortgage, based on the products and services they choose to purchase.
With this updated offer, customers can decide annually which products they contract with the bank and modify them as needed, based on their life cycle and financial planning. This way, customers can access this mortgage range without any associated products, but will benefit from discounts of up to 100 basis points on the applicable nominal interest rate (the current offer with applied discounts starts at Euribor + 0,99% variable rate and 1,90% APR fixed rate), subject to meeting the maximum discount conditions as shown in the attached table.
Since the beginning of the year, the bank has been covering all the costs associated with mortgage registration: land registry and notary fees , the property registry extract, the appraisal (when requested by the bank), the administrative fees, and the stamp duty (IAJD). This comes at a time when financial institutions have opted to pass on the fees and other costs associated with managing and maintaining their mortgages to the borrowers themselves.
Offer for sustainable homes
If, in addition, the mortgaged property has an energy rating of A or A+ or is considered a sustainable property, according to the relevant certificates issued by recognized companies in the sector, it will receive a 10 basis point discount on the base mortgage rate. The bank is thus reinforcing its commitment to incentivizing energy efficiency and adapting its financial products to the commitment it has made as a responsible bank, which takes into account social and environmental aspects in its financial decision-making.
This is a new development for those seeking this type of product, as energy efficiency ratings are becoming increasingly important when taking out a mortgage. This offers some advantages over more conservative or conventional financing models. Customers can obtain benefits such as more affordable monthly payments, with savings of a few tenths of a percentage point compared to their initial rate. This allows them to save a few euros on each mortgage.
Mortgages grow 0,7%
The number of mortgages registered on homes is 29.032, down 0,1% from April 2018. The average mortgage amount is €124.655 , a 0,7% increase, according to the latest data from the National Statistics Institute (INE). The data also shows that the average mortgage amount registered in property registries in April (from previously executed public deeds) is €142.440, 1,8% higher than in the same month of 2018. Furthermore, the total value of mortgages registered on urban properties reached €5.325,6 million, 2,6% less than in April 2018. For homes, the capital lent stands at €3.619,0 million, representing a 0,6% year-on-year increase.
Meanwhile, data provided by the National Statistics Institute indicates that for mortgages taken out on all properties in April, the average initial interest rate was 2,51% (5,1% lower than in April 2018) and the average term was 23 years . 58,7% of mortgages were variable-rate and 41,3% were fixed-rate. The average initial interest rate was 2,23% for variable-rate mortgages (6,4% lower than in April 2018) and 3,07% for fixed-rate mortgages (4,8% lower).
Mortgages with registry changes?
For mortgages secured against homes, the average interest rate is 2,59% (2,9% lower than in April 2018), with an average term of 24 years. 56,8% of mortgages on homes are variable-rate, and 43,2% are fixed-rate. Fixed-rate mortgages have seen a 6,7% year-on-year increase. The average initial interest rate is 2,30% for variable-rate mortgages (a 5,1% decrease) and 3,09% for fixed-rate mortgages (a 1,8% decrease).
The total number of mortgages with changes to their terms registered in the property registries is 4.814, a 20,9% decrease compared to April 2018. Looking at the type of change, 3.932 novations (or modifications with the same financial institution) occurred in April, representing a year-on-year decrease of 19,3%. Meanwhile, the number of transactions involving a change of lender (creditor subrogations) fell by 27,8%, and the number of mortgages where the owner of the mortgaged property changed (debtor subrogations) decreased by 25,3%.
Trend in the national market
Regarding the results by autonomous community, the data provided by the National Institute of Statistics shows that the communities with the highest number of mortgages registered on homes in April are Andalusia (6.065), the Community of Madrid (5.380), and Catalonia (4.636) . The communities where the most capital is lent for mortgage registrations are the Community of Madrid (€963,0 million), Andalusia (€676,2 million), and Catalonia (€657,0 million).
On the other hand, the regions with the highest annual growth rates in loan capital are Navarre (59,4%), Andalusia (26,8%), and Aragon (26,0%). Furthermore, it should be noted that the regions with the highest annual growth rates in the number of mortgages on homes are Navarre (47,4%), Andalusia (16,7%), and La Rioja (15,1%). Meanwhile, the regions with the most negative annual growth rates are Murcia (-25,8%), the Balearic Islands (-22,4%), and the Community of Madrid (-10,3%).
Average interest rate
For mortgages secured against homes, the average interest rate is 2,59% (2,9% lower than in April 2018), with an average term of 24 years. 56,8% of mortgages on homes are variable-rate, and 43,2% are fixed-rate. Fixed-rate mortgages have seen a 6,7% year-on-year increase . The average initial interest rate is 2,30% for variable-rate mortgages (a 5,1% decrease) and 3,09% for fixed-rate mortgages (a 1,8% decrease), according to data provided by the National Statistics Institute for this period.
However, a continued decline is being observed in the Euribor , the main benchmark index for European mortgages , which is causing a slight increase in monthly mortgage payments. This comes after the Euribor reached historic lows a year ago, leading to unprecedentedly low interest rates for this banking product. Many banks have even offered spreads below 1%, in most cases with waived fees and other management or maintenance costs.
More savings on subsidized mortgages
One way to save money when taking out this banking product is to opt for discounted plans. This means that the more products you have with the bank, the better the interest rate you can get. This applies to products like investment funds, insurance, savings plans, or fixed-term deposits, which can result in interest rate reductions ranging from 0,10% to 1,50% in the best-case scenario . There are also offers for new customers that allow them to take out mortgages with more competitive interest rates.
While on the other hand, it is also worth noting that the current mortgage market tends to develop fixed rates to the detriment of variable rates. Given the foreseeable rise in rates in the euro zone. So that in this way there are no surprises during the duration of the contract. Because every month you will always pay the same, no matter what happens in the financial markets. Giving greater stability to people who choose this kind of financing when buying their home.
One way to save money when taking out this banking product is to opt for discounted plans. This means that the more products you have with the bank, the better the interest rate you can get on the loan. This applies to products like investment funds, insurance, savings plans, or fixed-term deposits. These products can result in a reduction in interest rates, which can range from 0,10% to 1,50% in the best-case scenario . There are also offers for new customers that allow them to take out mortgages with more competitive interest rates, often with waived fees.