BBVA is making a splash in the mortgage market this summer. Beyond the headlines surrounding the takeover bid for Banco Sabadell, the bank led by Carlos Torres has launched one of the most competitive offers in the sector: its fixed-rate mortgage at 2.60% (3.67% APR) for those who meet all the requirements.
To benefit from these discounted terms, it is essential to have a direct deposit of your salary (minimum €600, a pension of at least €300, or your self-employed contribution), in addition to taking out home insurance and a loan repayment policy (covering at least 50% of the mortgage amount, with a maximum of €150,000). Both policies must remain active throughout the entire mortgage term.
If these requirements are not met, the interest rate remains at 2.60% for the first six months only, and thereafter increases to 3.60% (APR at 4.20%) until maturity.
A differentiating point is that the offer is available for both the purchase of a primary residence and a second home. The financing limit varies: up to 80% of the appraisal value or purchase price (whichever is lower) for a primary residence, and up to 70% for a second home.
Regarding fees, the mortgage penalizes early repayment, whether partial or total. Each repayment requires a minimum disbursement of €300 and carries a maximum fee of 2% of the capital repaid early during the first 10 years, dropping to 1.5% thereafter. Under no circumstances may the fee exceed the actual financial loss for the bank, as established by law.
The term can be up to 30 years, provided the youngest earning policyholder is under 75 years old at the end of the contract. Finally, the offer is only available to Spanish residents with income and assets in euros.