Variable Rate Mortgage with Product-Related Discounts

Offer valid until May 15, 2022.

Financing subject to approval by Banco Santander. For housing free of fees and charges.
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).
Minimum amount to be financed: 20.000€. Interest rate: during the first six months the annual nominal interest rate is 1.98%. After the first six months, the 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 +1.98% (VariableAPR: 2.18%¹). 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 Euribor +0.88% (VariableAPR: 1.32%²).
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 early maturity, following notification at the address you indicate for foreclosure purposes, 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 payment of the loan with all your present and future assets, not only with the mortgaged property (Article 105 of the Spanish Mortgage Law and Article 1911 of the Civil Code).
1. VariableAPR 2,18%, calculated in accordance with the formula appearing in Appendix II of Law 5/2019, of 15 March, regulating real estate credit contracts, for a loan of €150,000.00 and a term of 30 years, and a fixed interest rate of 1.98% throughout the life of the operation, including in the calculation a compulsory fire and other damage insurance: €150/year, (approximate amount, as the cost will depend on the insurance provider you choose).
For calculating the APR, in this case as the rate after the first six months is lower than the initial fixed rate, the latter is considered the rate for the whole life of the loan.
For a loan to be repaid in 360 monthly instalments, the monthly instalment during the first 6 months, in which the initial nominal annual rate will be applied, will be €552.93. The monthly instalments from the seventh month onwards will be €552.93, applying the nominal annual interest rate of Euribor +1.98%, in the event that none of the conditions indicated are met.
2. VariableAPR: 1,32%, assuming a loan amount of €150,000 and a term of 30 years, to be repaid in 360 monthly instalments of €552.93 each, during the first 6 months, in which the initial nominal annual rate of 2.29% will be applied, and of €547.92 each month from the seventh month onwards and for the rest of the following years, in which the initial annual nominal rate of 1.98% will be applied, and of € 459.59 per month each from the seventh month and rest of the years, in which the annual nominal interest rate of Euribor +0.88% will be applied, assuming that the conditions indicated for access to the maximum discount of 1.10 percentage points are met, using as an example the fulfilment of the following conditions: A 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 monthly repayment instalment after the seventh month has been calculated on the assumption that the benchmark index does not vary; therefore, this monthly instalment will vary with interest rate reviews and the amount and term may also vary. (Euribor published in the Official Spanish State Gazette (BOE) in April 2022 -0,237%).
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: €181.306,85.
- When none of the conditions granting the right to a discount are met: €203.848,90.
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 spread 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 closest date to contracting the loan.
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.
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).