HBG

Bankinter is a decent bank and what you are being offered is about average. You may be able to negotiate the 2% down to 1.5, and if you already have life insurance they may accept that. You can change the building insurance a year or so into the life of the mortgage, and get it cheaper, but it’s not a big deal.

3.5% sounds a marvellous deal, historically, but who knows what the future holds.

Personally, I would go for it.

Veleta

My OH's mortgage is with Bankinter and he pays Euribor + 0.3%, but he took that mortgage out nearly two years ago and I guess things have changed a lot since then!

I think a lot of banks insist you take out the buildings/contents insurance with them.

spain

noooooooo

Jontee

My neighbour has been trying to get a mortgage since May 2009.
The situation is that he bought his house 'off-plan' and was told that he would have to wait for completion before he could get a mortgage. He was OK with that and borrowed from 2 close family members to be able to complete the buying process. He now lives here permanently and his house here is his only property.

He applied for and was given the OK by Bankinter for a mortgage, but when he was at the appointment in the Notary they declined to proceed as the Licence of first Occupation had not been issued. Then, in the time honoured spanish way he had to wait almost 2 years for that final piece of paperwork to be issued. And in that time the financial climate changed considerably.

In May last year, with all the paperwork in order, he went back to Bankinter and was told sorry but they do not offer 'that type of motgage' now. They will give him one to buy a property but not to release equity from one he owns. Since then he has been stuck. The two family members want their money back, as it was supposed to be a short term loan, and he has tried three other banks, all telling him the same. One actually took two months, and opened an account for him and asked for money to be deposited for the valuation before saying no. So he removed his money and asked for the account to be closed. The account remains open, but that's another long story.

A spanish friend of his called into his own bank, Santander, to ask if they do an equity release mortgage. They asked if the person was rich, and then if he was spanish, and when the two answers were 'No' they laughed and said 'No way'.

This all seems totally mad. They are all happy to lend money to buy a house, but if you already own one outright they are not interested. My friend is getting really concerned now and is even talking of having to sell his house. Are all the banks the same? If anyone has managed to obtain this kind of mortgage, which bank issued it? He really does not want to sell as at the moment that will be difficult too.