Bankinter turns the mortgage market on its head and inaugurates a new loan category that combines in a single product the advantages of the fixed mortgage and the variable mortgage, and in which, unlike the mixed mortgage, the two interest rates coexist throughout the life of the loan. In short, it is a differential product in terms of its characteristics, never before seen on the market and in which Bankinter once again sets a milestone in financial innovation.
With the launch of this new mortgage, Bankinter is placing on the market a mortgage product that adapts to the needs and characteristics, present and future, of each customer and to all types of financial environments and interest rates.
The customer defines the percentage of fixed and variable
The Dual Mortgage allows customers to define from the start of the loan what percentage of the mortgage will operate in variable mode and what part will operate in fixed mode, each with their respective particularities. In this way, the percentage of capital in fixed mode will be amortised at a fixed interest rate throughout the life of the loan, while the variable part will do so as usual in this type of mortgage: with a fixed starting rate for the first 12 months of the loan and, thereafter, an annually revisable rate referenced to Euribor + a differential established by the bank. The sum of both amounts will make up the monthly payment of the Dual Mortgage.
In this sense, the customer’s current account will be debited with a single monthly instalment, although the loan information will give a breakdown of how much of this instalment corresponds to the variable tranche and how much to the fixed tranche, as well as the interest rates applied in each case.
The Dual Mortgage allows you to protect part of the debt against rises (fixed tranche), while benefiting from any possible falls in rates thanks to the variable tranche.
Flexibility and maximum customisation in Bankinter’s new mortgage
In short, it is a product that offers customers greater flexibility and personalisation, by giving them the ability to choose to what extent they do or do not want to be exposed to the evolution of interest rates, either by defining from the outset the percentages of capital in each mode, or over the life of the loan, balancing this proportion through early repayments.
This same duality of the mortgage is also open to the early repayments that the customer decides to make throughout the life of the loan, in which he may decide to use the amortised capital to reduce the outstanding capital of one of the tranches separately or to both tranches in proportion to the outstanding debt at that time. At the time of amortisation, as is usual in all mortgages, the customer will also indicate whether he/she wishes to reduce the instalment or the term.
Thanks to this possibility, the customer will be able to balance the percentage of capital owed in variable mode and in fixed mode, according to personal and economic circumstances together with the situation of the markets, with the possibility of one tranche of the mortgage maturing before the other.
The fact that the structure of the loan itself is configured by the customer gives this mortgage a maximum degree of personalisation in its conditions.