Discounted Mixed Mortgage¹

1. Offer ends on December 15, 2022. Financing subject to Banco Santander's approval. For homes without any charges or encumbrances.
This information does not replace the pre-contractual information file, available at  www.bancosantander.es and the bank's branches. You can visit your branch to request the European Standardised Information Sheet (ESIS). In case of proceeding with the proposal, the rest of the mandatory pre-contractual documentation will be delivered.

Minimum mortgage amount: €20,000.00. Interest rate: for the first six months the annual nominal interest rate is NIR 4.40%. After the first six months and until next 9 years, the interest rate will be fixed and will be reviewed on an annual basis. If none of the specified conditions are met, the annual nominal interest rate will be NIR 5.40% (VariableAPR: 5.65%²). If all specified conditions are met, a variety of reductions may be made to this interest rate, in the form of a discount, of up to 1.10 percentage points, resulting in an annual nominal interest rate of NIR 4.30% (VariableAPR: 4.95%³). From nine years and six months, the annual nominal interest rate will be variable and will be reviewed on an annual basis. If none of the specified conditions are met, the annual nominal interest rate will be Euribor +1.90% (VariableAPR: 5.65%²). If all specified conditions are met, the interest rate may be discounted by up to 1.10 percentage points, resulting in an annual nominal interest rate of Euribor +0.80% (VariableAPR: 4.95%³).

The terms, conditions and opinions contained in this document are merely for information and guidance and are provided solely for those purposes. This document does not constitute an offer or recommendation for contracting, purchase or sale or for any other transaction.
You may lose the property if any of the obligations contained in the mortgage loan agreement are breached. 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. In accordance with article 105 of the Mortgage Law and article 1911 of the Civil Code.

2.VariableAPR 5.65%, calculated pursuant to the formula that appears in Annex II of Law 5/2019, of 15 March, regulating real-estate loan agreements, for a loan of €150,000 and a repayment term of 30 years, to be repaid in 360 monthly instalments of €751.14 each for the first six months, when the nominal annual interest rate of NIR 4.40% will be applied, and of €841.15 each from the seventh month onwards until the next 9 years, when a nominal annual interest rate of NIR 5.40% will be applied, and of €841.15 each from the 9 and a half years onwards, when the nominal annual interest rate of Euribor + 1.90% will be applied in case none of the indicated conditions are satisfied, including in the calculation of compulsory fire and other damage insurance: €150 per year (indicative amount given that cost will vary depending on the insurance company).

For the calculation of the APR, in this case in which the resulting rate after the fixed interest periods has elapsed, is lower than the higher of the fixed rates established, this is considered for the entire life of the operation.

Total cost of the loan €157.076,44 (including interest amounting to €152.273,94). Total amount due (sum of the loan amount and the total cost of the loan): €307.076,44. Price subject to risk analysis.  

3. VariableAPR: 4.95%, calculated in accordance with the formula that appears in Annex II of Law 5/2019, of 15 March, regulating real-estate loan agreements, for a loan amounting to €150,000 and a term of 30 years, to be repaid in 360 monthly repayments of €751.14 each, for the first six months, when the initial annual nominal rate of NIR 4.40% will be applied, and of €742.42 each, from the seventh month to the next 9 years, when an annual nominal rate of NIR 4.30% will be applied, and of €748.95 each, from the 9 years and 6 months onwards, when a nominal annual interest rate of Euribor + 0.80% will be applied, assuming that the conditions indicated for accessing the maximum discount of 1.10 percentage points are met, taking compliance with the following conditions as an example: salary of more than €600 paid directly into bank, use of credit cards, with a home insurance premium amounting to €200 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), and energy efficiency certificate A+, A or B, as these are the most representative of your level of arrangement. The first review of the commitments will be in month 6, with application on the interest rate in month 7, and the successive reviews will be carried out annually.

For the calculation of the APR, in this case in which the resulting rate after the fixed interest periods has elapsed, is lower than the higher of the fixed rates established, this is considered for the entire life of the operation.

Total cost of the loan €134.232,40 (including interest amounting to €118.929,90). Total amount owed (sum of the amount of the loan and its total cost): €284.232,40. Price subject to risk analysis.

The repayment amount from the next 9 years and 6 months, in both cases, has been calculated on the assumption that the benchmark index does not vary; therefore, this monthly repayment will vary with yearly interest rate reviews and may also vary depending on the amount and term. (Euribor published in the Official State Gazette of May 2022 (The benchmark used is Euribor 12 months. BOE Published Euribor in November 2022: 2,629%). 

For examples 2 and 3, other elements that make up the total cost of the loan, opening commission: €0, maintenance commission for the loan support account (necessary for contracting the loan): €0; appraisal fee: €302.50 (VAT-inclusive); and a Land Registry extract: €0.

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" repayment system, whereby the loan capital and the interest will be repaid through 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, on the other hand, there is a fall in the applicable interest rate, the amount of the instalment will decrease.

4. Insurance policies underwritten by Santander Mediación Operador de Banca-Seguros Vinculado S.A., tax ID A28360311, through the Banco Santander, S.A. distribution network. Operator entered in the register of the Directorate General of Insurance and Pension Funds with number OV-0042. Third-party liability and financial capacity covered in accordance with applicable law. You can check the insurance companies with which the operator has an agency agreement for the distribution of insurance products at  www.santandermediacionobsv.com.
5. The financial loss suffered by the bank will be calculated, in proportion to the capital repaid, by negative difference between the capital payable at the time of early repayment and the present market value of the loan. The present market value of the loan will be calculated as the sum of the present value of the instalments payable up to the mortgage due date. The updated interest rate will be the sum of: (i) the interest rate swap (IRS) rate for terms of 2, 3, 4, 5, 7, 10, 15, 20 or 30 years, published by the Bank of Spain, that is closest to the remaining term from the date of early repayment up to its due date and (ii) a spread resulting from subtracting the value of the Interest Rate Swap (IRS) referred to in the previous section from the interest rate of the transaction, using the latest data published by the Bank of Spain on the date closest to that on which the loan is arranged. Home mortgage loan.
6. If the mortgage refers to properties for residential use, pursuant to Law 5/2019 of 15 March regulating real estate credit, the mortgage establishment costs will be borne by Banco Santander in contracts with natural persons, excluding appraisal and simple filing costs, to be borne by the customer.
Home mortgage loan. Lender: Banco Santander, S.A with registered office at Santander, Paseo de Pereda, 9- 12 (39004) – Cantabria Mercantile Registry, Sheet 286, Folio 64, Companies Book 5, entry 1, Corporate tax ID A-39000013.
If the mortgage loan on the property is being arranged in the autonomous region of Andalusia  click here (PDF 148 KB).