Fixed Rate Mortgage with Product-Related Discounts

1. Offer ends on April 15, 2023. Financing subject to approval by Banco Santander. For housing free of charges and encumbrances.
This information does not replace the pre-contractual information file, available at www.bancosantander.es and at the Bank's offices. You can visit your local branch to request the European Standardised Information Sheet (FEIN). In case of proceeding with the proposal, the rest of the mandatory pre-contractual documentation will be delivered.

Minimum amount to be financed: 20.000€. Interest rate: for the first six months the nominal annual interest rate will be 3.99% NIR. After the first six months, the interest rate will be reviewed annually. If none of the specified conditions are met, the annual nominal interest rate will be 4.99% NIR (5.23% APR²). If the above terms conditions are met, the interest rate may be reduced in various ways, by way of a discount, up to a maximum of 1.10 percentage points, resulting in a nominal annual interest rate of 3.89% NIR (4.49% APR³).
In the event of non-compliance with the commitments arising from the mortgage loan contract, there is a risk of loss of the property. In the event of non-payment and in all cases of mortgage acceleration, the bank may, after sending prior notification to the address you indicated for mortgage foreclosure purposes, pursue personal action against you or move to foreclose the mortgaged property. You will therefore be liable as before the bank for repaying the loan with all your present and future assets as well as the mortgaged property. According to Article 105 of Spanish Mortgage Law and Article 1911 of the Civil Code.
2. APR 5.23%, calculated in accordance with the formula that appears in Annex II of Law 5/2019, of March 15, regulating real estate credit contracts, for a loan amounting to €150,000 and the term of 30 years, to be repaid in 360 monthly installments of €715.26 each, during the first 6 months, in which the initial annual nominal rate of 3.99% NIR will be applied, and €803.15 per month each one, from the seventh month and the rest of the years, in which the annual nominal interest rate of 4.99% NIR will be applied, based on the hypothesis that the requirements to obtain the 1.10 percentage point bonus are not met, including mandatory fire and other damage insurance: €150/year (approximate amount since its cost will depend on the company with which you choose to hire it).
Total cost of the loan €143.409,16 (including interest amounting to € 138.606,66). Total amount due (sum of the loan amount and the total cost of it): € 293.409,16. Price subject to risk analysis.
3. The APR 4.49%, calculated in accordance with the formula that appears in Annex II of Law 5/2019, of March 15, regulating real estate credit contracts, for a loan amounting to €150,000 and the term of 30 years, to be repaid in 360 monthly installments €715.26 each during the first 6 months in which an annual nominal interest rate of 3.99% NIR and €706.75 per month each will be applied, from the seventh month and the rest of the years, in which the annual nominal interest rate of 3.89% NIR will be applied, based on the hypothesis that the indicated conditions are met to access the bonus of 1.10 percentage points, taking As an example, compliance with the following conditions: direct debit of salary of more than €600, use of credit cards, with home insurance €200 per year and life insurance €300 per year (for a 35-year-old client. The insurance premium will be updated annually as established in the particular conditions of the policy), and the Certificate of Energy Efficiency A, B or EEC issued by BREEAM, LEED, GREEN or PASSIVE HOUSE as these are the most representative due to their level of contracting. The first review of the commitments will be in month 6, with application on the interest rate on month 7, and the successive revisions will be carried out annually.

Total cost of the loan €119.783,56 (including interest amounting to €104.481,06). Total amount due (sum of the amount of the loan and the total cost of it): €269.783,56. Price subject to risk analysis.

For examples 2 and 3, other elements that make up the total cost of the loan, included in the calculation of the APR: opening commission: €0, maintenance commission for the loan support account (necessary for contracting the loan): €0, and appraisal expenses: €302.50 (VAT included).
The agreed mathematical formula to determine the amount of each of the repayment instalments is as follows:
Repayment = Cx ix (1 + i )ⁿ / (1 + i )ⁿ -1 (*)
(*) Where:
C= Pending capital.
i= I / P.
n= Number of pending repayments.
I= Nominal interest rate.
P= Number of payments per year.

The mathematical formula used to calculate interest for a given month is as follows:
Interest = C x i(*)
(*) Where:
C = Principal pending.
i = I/P.
I = Nominal interest rate.
P = Number of settlements per year.
The mathematical formula used to calculate the amortization of principal for a given month is as follows:
Quota-Interest(*)
(*) Both the calculation of the installment and the interest are explained in the formulas detailed above.

This formulas follow the so-called "French amortisation system, which means that the loan capital and interest are repaid in constant periodic payments, i.e. of the same amount, as long as there is no change in the applicable interest rate. Since interest accrues on the amount of principal outstanding, as time goes by the amount of the payment destined to repay the capital becomes greater, while the amount corresponding to the payment of interest will decrease, because the outstanding capital will be less. If, when the interest rate is revised, there is an increase in the interest rate applicable to the loan, the payment amount will increase. If, on the other hand, the applicable interest rate is lowered, the payment amount will decrease.

4. The financial loss suffered by the Bank shall be calculated, in proportion to the capital repaid, as the negative difference between the capital outstanding at the time of early repayment and the present market value of the loan. The present market value of the loan shall be calculated as the sum of the present value of the payments pending until expiry. The update interest rate will be the result of adding: (i) the Interest Rate Swap (IRS) rate for a 2, 3, 4, 5, 7, 10, 15, 20 or 30 year term, published by the Banco de España, which is closest to the remaining term from the early repayment date to the loan end date, and (ii) a margin that results from subtracting from the interest rate of the operation the value of the Interest Rate Swap (IRS) referred to in the previous section, considering the latest data published by the Bank of Spain on the date that most closely approximates the contracting of the loan.
5. In the event that the mortgage falls on real estate for residential use, in accordance with Law 5/2019, of March 15, regulating real estate credit agreements, the costs of constitution of mortgage will be assumed by Banco Santander when contracting with individuals, except for the costs of appraisal, which will be assumed by the client.
6. Insurance policies brokered by Santander Mediación Operador de Banca-Seguros Vinculado S.A., N.I.F. A28360311, through its distribution network Banco Santander S.A. Operator registered in the Registry of the Directorate General of Insurance and Pension Funds under number OV-0042. Civil liability and financial capacity covered according to current legislation. Check the Insurance Companies with which the Operator has an Agency Agreement for the distribution of insurance products at www.santandermediacionobsv.com.
Mortgage loan on the home. Lender: Banco Santander, S.A. with registered office in Santander, Paseo de Pereda, 9- 12 (39004) - M.R. Cantabria, Sheet 286, Page 64, Book 5 of Companies, Insc. 1, C.I.F. A-39000013.
If the mortgage loan on the home to be acquired is formalised in the territory of the Community of Andalusia click here (PDF 148 KB).