The Mortgage Privilegium VIP of Banco Mediolanum, leader of the ranking of cheaper mortgages
The Mortgage Privilegium VIP is once again the cheapest mortgage in the market, just above the Mortgage Select of Liberbank, which occupies the second position of our 'top 10'. Both entities offer a differential of 0.85% to those who need financing for the purchase of a home. However, the mortgages of Banco Mediolanum have a more economical fixed interest rate (1.4% for 12 months, compared to 1.75% for 24 months of Liberbank), which allows it to occupy the highest position of our listing.
Otherwise, it should be noted that the Mortgage Privilegium VIP is not available to anyone. To be able to contract it is necessary to have a minimum net worth of 350,000 euros in Banco Mediolanum, of which 100,000 euros must be invested in managed savings products, such as investment funds.
As for the required bonding, the Mortgage Privilegium VIP requires that the client domicile his payroll (if he is an employee) and contract a home insurance and a life insurance.
With respect to the other characteristics, they are similar to those of other mortgages that can be found in the market, although with certain peculiarities:
It allows to finance up to 80% of the valuation value or purchase price (the lesser of the two) of a first dwelling
Offers a repayment term of up to 30 years
It charges an opening commission of 1%
Review the Euribor quarterly, rather than annual (or semi-annual), as with most mortgages on the market
The Banco Pichincha Mortgage Loan, among the least attractive
The Ecuadorean bank Banco Pichincha offers one of the least interesting mortgages on the market due, among other things, to its high differential: this loan earns interest of € 2.80%, which can be reduced to + 2.25% if the customer is willing to link with several products or services:
Domicile of payroll and / or social insurance
Domicile of three receipts from different companies
Life insurance
Home insurance
Credit card
In addition, the Banco Pichincha Mortgage Loan has a opening fee of 0.50%, subject to a minimum of 900 euros, charges for early amortization (0.50% for the first five years and 0.25% for the remainder of the term) and applies a fixed exit interest of 2.79% TIN during the first 12 months.
To keep in mind: is the mortgage loan always worth it?
The lack of a mortgage is an option that the banks offer to reduce the amount of the monthly payment that the consumer pays. To achieve this, some entities allow the client to pay only interest (partial grace) or to stop paying all of his or her monthly payment (total deficiency) for a period of time. Now, at what price?
As we told you in this analysis, asking for a lack of a mortgage generates a number of extra expenses:
First, the consumer will have to pay more interest on the loan because the repayment term is extended.
Secondly, the mortgage fee that will have to be paid once the grace period ends is always greater than the one initially paid to the bank
The third place, to ask for a lack there is to carry out a novation, a process that usually has expenses
Finally, some banks impose extra requirements or conditions during the grace periods: for example, they may increase the interest applied or require more related products to be contracted
