Minimum mortgage amount: €6,000. Interest rate: during the first year the annual nominal interest rate will be 1.20%. From year two onward, the interest rate will be reviewed on an annual basis. If none of the specified conditions are met, the annual nominal interest rate will be 2.20%. If the specified conditions are met, the interest rate may be reduced, as a discount, up to a maximum of 1.00 percentage point, resulting in an annual nominal interest rate of 1.20%.
APR 2.31% for a loan of €150,000 repayable in 240 monthly instalments over 20 years. An initial annual nominal rate of 1.20% will apply during the first year and each monthly instalment will amount to €703.31, and an annual nominal rate of 2.20% will apply for the second and all other years after that, with the monthly instalment amounting to €769.69, supposing that the requirements for obtaining the 1 percentage point discount are not met, including compulsory insurance against fire and other damage: €150 per year (indicative amount, given that cost will vary depending on the insurance company).
APR 1.84% for a loan of €150,000 repayable in 240 monthly instalments over 20 years. An initial annual nominal rate of 1.20% will apply during the first year and each monthly instalment will amount to €703.31, supposing that the requirements for obtaining the maximum discount of 1 percentage point are met, taking fulfilment of the following terms as an example: two salaries of more than €1,200 paid directly into bank, three or more bills paid by direct debit, use of credit and debit cards, with home insurance premium amounting to €199 per year and life insurance premium of €300 per year (for a 35-year-old customer. The insurance premium will be updated annually pursuant to the particular terms and conditions of the policy), as these are the most representative of your level of arrangement.
Other concepts that make up the total cost of the loan, included when calculating the APR: arrangement fee: €0; maintenance fee for the support account for the loan: €0; appraisal fee: €278.30 (VAT-inclusive); and a Land Registry extract: €15.73 (VAT-inclusive).
The agreed mathematical formula for determining the amount of each of the repayment instalments is as follows: Instalment = Cx ix (1 + i)n / (1 + i) n-1 (*)
C = initial capital.
i = I / P x 100.
n = number of instalments.
I = nominal interest rate.
P = number of settlements per year.
This formula follows the so-called "French" repayment system, whereby the loan capital and the interest is repaid in constant periodic instalments, i.e. of the same amount, providing that there is no change in the applicable interest rate. Given that the interest is accrued on the amount of principal outstanding, as time passes, more of the instalment goes towards repaying capital and less goes towards paying interest, because there will gradually be less capital outstanding
If the interest rate is revised and the interest applicable to the loan rises, the instalment amount will go up. If the applicable interest rate drops, the instalment amount will decrease.
Total amount repayable (sum of the loan amount and the total cost of the loan): if the conditions for the maximum discount are met: €179,067.97. If none of the conditions entitling discount are met: €187,222.27.