Rising Mortgage Rates: Which Banks Still Offer Low Interest Rates?
In recent weeks, banks such as Bankinter, BBVA, and Banco Santander have signaled that current mortgage interest rates are no longer sustainable, prompting these institutions to raise their rates. However, not all banks have followed suit. According to analysts from financial comparator HelpMyCash.com, several banks continue to offer affordable mortgages with competitive interest rates, provided customers are willing to bundle additional products.
Fixed Rates Starting at 2.15% TIN
One standout option is the Hipoteca Vamos Fija from Ibercaja, boasting a remarkably low interest rate starting at 2.15% TIN (3.10% TAE). To access this rate, borrowers must deposit their salary and three bills, utilize a credit card, purchase home and life insurance from the bank, and invest in a systematic savings plan. Failure to meet these conditions could see the rate rise to 3.15% TIN (3.39% TAE).
Another excellent choice is the Hipoteca Open Fija from Openbank, which offers a starting rate of 2.36% TIN (2.97% TAE). This rate is available upon setting up direct deposits and purchasing insurance through Openbank. If these criteria are not satisfied, the interest rate jumps by 0.50 percentage points to 2.86% TIN (3.15% TAE).
Completing the top three for fixed-rate mortgages is the Hipoteca Fija from Banco Sabadell, with rates from 2.50% TIN (3.33% TAE), contingent on salary deposits and insurance procurement. If borrowers do not engage in these additional services, the interest rate can increase to 3.50% TIN (4.07% TAE).
Mixed Mortgages with Initial Rates from 1.55% TIN
When it comes to mixed mortgages, Ibercaja again leads with a rate that starts at 1.55% TIN for the first five years, switching to euribor plus 0.60% afterward (3.23% TAE). Similar conditions for bonus rates apply as with their fixed options, with rates increasing to 2.55% TIN for the initial term if requirements are not met.
Following closely is Cajamar’s HipotecON Mixto, which offers initial rates from 1.79% TIN for five years and euribor plus 0.50% thereafter (3.15% TAE). To secure this rate, borrowers need to set up direct deposits, open remote banking services, and acquire insurance options. Without these services, the interest shifts to 2.39% TIN for the fixed period and euribor plus 1.10% for the variable portion (3.17% TAE).
The Hipoteca Mixta from Banco Sabadell rounds out the top three, with rates starting at 1.80% TIN for the first three years and switching to euribor plus 0.70% later (3.47% TAE)—again, conditioned upon salary deposits and insurance products.
Variable Rates Starting from Euribor + 0.49%
On the variable mortgage front, Kutxabank leads with the lowest interest rates, starting at 1.53% TIN for the first year and then from euribor plus 0.49% for the remainder (3.05% TAE). Customers must set up salary deposits and also purchase home insurance and a pension plan from the bank. Without these conditions, the interest rises to euribor plus 1.49% after the first year (3.68% TAE).
Following Kutxabank, the Hipoteca Variable from Banco Sabadell also offers competitive rates, beginning at 1.65% TIN for the first year and euribor plus 0.55% thereafter (3.48% TAE). These rates depend on maintaining direct deposits and insurance contracts; failing to meet these criteria leads to a rate of 2.65% TIN and euribor plus 1.55% in the subsequent years (4.21% TAE).
Lastly, Unicaja’s Hipoteca Variable offers a fixed rate of 1.90% TIN for the first year, transitioning to euribor plus 0.60% afterward (3.60% TAE). To achieve these rates, customers must deposit their salaries, utilize a credit card, and purchase insurance and pension plans from Unicaja. If these conditions are not fulfilled, the rate could escalate to euribor plus 1.55% after the first year (3.72% TAE).
Conclusion
The landscape for mortgage lending is evolving, with some banks increasing rates while others still offer enticing low-interest options. Homebuyers should carefully compare current offerings and be mindful of the additional products required to maintain competitive rates.