In this world of zero or even negative interest rates, banks are looking for a way to continue earning income from their business. In the absence of profitability for each operation, many entities are opting for volume (they reduce intermediation margin in exchange for gaining volume of credit, mortgages …). This trend is fueling the mortgage war that raises a tone more than the new offer launched by the Dutch bank ING.
Banks seek to win customers by offering better conditions , pushing the price of mortgages to the limit. ING has reduced the price of all its mortgages by 10 basis points: variable, mixed and fixed, lowering the price of this last loan from 1.60 to 1.50%.
The ‘Variable Orange Mortgage’, its price will be calculated with the Euribor plus a differential of 0.89% compared to the 0.99% existing until now, keeping the price of the first year at 1.99%. The ‘Mixed Orange Mortgage’ maintains the price of the first ten years at 1.25% and reduces the variable differential for the rest of the years from 0.99 to 0.98%.
The bank framed this decision in the decision to offer “a leading mortgage offer both for its variety and for its price, conditions, simplicity and ease of contracting.”
All its mortgages cover with financing up to 80% of the appraised value in the case of a first residence and 75% if it is the second, and they do not charge any type of additional expense for its formalization (notary, registry, agency and appraisal).
Its hiring process is also 100% online until the signature and with a personal manager who accompanies the client, which guarantees its simplicity and agility.
“No additional cost”
On the other hand, from the entity they assure that these mortgages “do not entail any type of additional expense for their formalization”. In addition, the process is ‘online’ until the signature and has a personal manager during it.
Regarding the evolution of mortgage activity, ING points out that until March there has been a 46% increase in new production compared to the same period in 2020.
By type of mortgage, 48% of those contracted in 2021 have been at a variable rate, 38%, mixed and 14%, fixed. Regarding channels, in June 35% of mortgage loans were made through digital devices.