Variable Rate Online Mortgage with Product-Related Discounts

Offer valid until October 31, 2021.
Financing subject to approval by Banco Santander. This information does not replace the FIPRE, (Precontractual Information Sheet) available on the website www.bancosantander.es and at the Bank's offices. You can visit your local branch to request the European Standardised Information Sheet (FEIN).
Minimum amount to finance: € 20,000. Interest rate: the first year the annual nominal interest rate is 2.09%. After the first year, the interest rate will be variable and will be reviewed annually. If none of the indicated conditions are met, the annual nominal interest rate will be Euribor + 2.09% (Variable APR: 2.30%¹). If the indicated conditions are met, the interest rate may experience various reductions, as a bonus, up to a maximum of 1.00 percentage point, giving rise to an annual nominal interest rate of Euribor + 1.09% ( Variable APR 1,36%²).
In the event of non-compliance with the commitments derived from the mortgage guaranteed loan contract, there is a risk of loss of the home. In the event of non-payment and in all cases of early maturity, prior notification at the address you indicate for the purposes of foreclosure, the Bank may proceed against you by personal action or by real action against the mortgaged property, as you will be liable to the Bank for the payment of the loan with all your present and future assets, not only with the mortgaged property (article 105 of the Mortgage Law and 1911 of the Civil Code).
1. Variable APR 2,30%, calculated in accordance with the formula in Annex II of Law 5/2019, of 15 March, regulating real estate credit contracts, for a loan of 150,000.00 euros and a term of 25 years, and a fixed interest rate of 2.09% during the entire life of the operation, including in the calculation a compulsory insurance against fire and other damage: €150/year (indicative amount as its cost will depend on the company you choose to contract it with).
For the calculation of the APR, in this case where the resulting rate after the first year is lower than the initial fixed rate, the latter is considered for the whole life of the operation.
For a loan to be repaid in 300 monthly payments, the amount of the monthly payment during the first 12 months, in which the initial annual nominal rate will be applied, will be 642,37 euros. The monthly payment during the second year will be 642,37 euros, applying the nominal annual interest rate of Euribor + 2,09%, in the event that none of the mentioned conditions are met.
2. Variable APR: 1,36%, in the event that the amount of the loan is 150.000 euros and the term is 25 years, to be repaid in 300 monthly instalments of 642,37 euros each, during the first 12 months, in which the initial annual nominal rate of 2.09% will be applied, and of 542,02 euros per month each, during the second and remaining years, in which the annual nominal interest rate of Euribor + 1.09% will be applied, based on the hypothesis that the conditions required for the maximum discount of 1 percentage point are fulfilled, taking as an example the fulfilment of the following conditions: two salaries of over 1,200 euros paid directly into the account, direct debit of 3 or more bills, use of credit and debit cards, with home insurance for 199 euros per year and life insurance for 300 euros per year (for a 35 year old client. The premium of the insurance will be updated annually according to the particular conditions of the policy), as these are the most representative due to the level of contracting. The payment amount from the second year onwards has been calculated based on the assumption that the reference index does not change, and therefore this payment amount will vary with interest rate revisions, and may also vary according to the amount and term. (Euribor published in the BOE in October 2021: -0,492%).
Other elements that make up the total cost of the loan, opening fee: 0€, maintenance fee for the account supporting the loan: 0€, Appraisal costs: €278.30 (including VAT) and Nota Simple (Property Registry Certificate): €15.73 (including VAT).
The agreed mathematical formula for determining the amount of each of the repayments is as follows: Payment = Cx ix (1 + i n / (1 + i) n-1 (*)
Where:C= initial capital.i= I / P x 100.n= Number of payments.I= Nominal interest rate.P= Number of payments per year.
This formula is based on 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.
Total amount to be repaid (sum of the amount of the loan and the total cost of the loan):
- If the conditions are met granting entitlement to the maximum discount: € 176.578,23€.
- When none of the conditions granting the right to a discount are met: € 196.756,34€.
3. 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 outstanding payments until the next interest rate review or until the due date and the present value of the outstanding capital that would remain at the time of the review in the absence of early repayment. 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 interest review date or the loan end date, and (ii) a margin resulting from subtracting from the transaction interest rate, at the time the transaction is entered into, the value of the Interest Rate Swap (IRS) rate which is closest at that time to the next interest review date or to the end of term date.
4. 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 and Simple Note, which will be assumed by the client.
5. 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.
6. Investment funds are products that depend on fluctuations in market prices and other variables. The value of the shares can go up as well as down, so recovery of the invested capital cannot be guaranteed. Past performance is not a reliable indicator of future results.
Investment funds involve certain risks (market, credit, liquidity, foreign exchange, interest rate, etc.), all of which are detailed in the Prospectus and the Fundamental Data for Investors (DFI) document. The nature and extent of the risks will depend on the type of fund, its individual characteristics, the currency and the assets in which the fund's capital is invested.As a result, the choice between the various types of fund must be made taking into account the investor's desire and ability to assume risk, as well as his or her return expectations and investment time horizon. Before subscribing to units of a fund, investors should read the information contained in the Prospectus and the fund's DFI, both of which are available to investors at our offices and from the Spanish National Securities Market Commission (CNMV).
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).