BBVA Mortgages for Collectives

The BBVA Group Mortgage is a loan for Spanish residents whose income and assets are exclusively in euros.

To apply for a mortgage, you must have a damage insurance policy for the mortgaged property for the duration of the mortgage. The insured amount must match the appraisal value (not including the land value). The insurance policy (which you do not have to take out with BBVA) must cover any damages to the property caused by fire, explosions, or natural causes. The bank must appear on the policy as the beneficiary of the outstanding amount.

You also need to have a checking account with BBVA. This account will be used for any transactions associated with your mortgage, such as deposits and direct debits. Please see the pre-contractual information for all the information on account administration and maintenance fees.

Please note that the granting of a mortgage is subject to authorization by the bank.

Yes, you can pay off your mortgage early in part (minimum €300) or in full. In addition to the amount you want to repay, you will have to pay interest and an amount as compensation for the early full or partial repayment that is equivalent to the financial loss that the Bank may sustain, and which may be, in the case of a Variable Rate mortgage:

• In the first 5 years: with a limit of 0.15% of the principal repaid in advance.
• From the 6th year (inclusive): 0% of the principal repaid in advance.

And if the mortgage is Fixed Rate:

• In the first 10 years: with a limit of 2% of the principal repaid in advance.
• From the 11th year (inclusive): with a limit of 1.5% of the principal repaid in advance.

Remember that before doing so, you have to read the information we will provide you, which details the consequences of each of the payments so that you can evaluate each of the options. You have to request the information 30 days in advance at your BBVA branch.

There is also an exemption from early repayment or redemption fees or compensation throughout 2023 for variable interest rate loans, as provided for in the first additional provision of RDL 19/2022 of November 22.

The NIR (Nominal Interest rate) is what you pay to a bank in exchange for receiving a loan. The NIR is usually less than the APR and is not useful for comparing the prices of different mortgages, since it only includes the interest rate and not all the transaction fees. 

APR (Annual Percentage Rate) is a percentage indicator that allows customers seeking a mortgage to compare different offers and thus have a reference to the real cost of the mortgage. It includes both interest and the different associated costs and fees.

Mortgage loan expenses are paid by the bank: registration, notarial fees, processing and stamp duty. In Basque Country, stamp duty on a second home is paid by the buyer.

Purchase and sale expenses have nothing to do with the mortgage. Therefore, the bank is not responsible for paying them. These include the following expenses: taxes (e.g. property transfer tax or VAT) and management, notary and registration costs.

The valuation is paid for by the borrower.

Please consult the following documents for all the basic information on our mortgages:

• Pre-contractual Information Sheet (FIPRE)
• Supplementary pre-contractual information (DIPREC)
• Informative poster

Your BBVA adviser will also answer all your questions and accompany you throughout the process. Once you have submitted the documents needed to perform the economic study and we have completed the feasibility study, and other mandatory information that you need to sign the mortgage loan.

They are calculated using the French repayment system. The monthly payment will be calculated at the beginning of each interest period and will be fixed for the duration. The payment may vary in each interest period and during the period if a partial repayment is made. This calculation system makes the monthly payment as constant as possible. It can only vary if the interest rate changes or if you make early repayments.

To calculate the payments with this system, we use the following formula: (C*i/m)/(1-(1+i/m)^(-m *n), where C is the principal, i is the annual nominal interest rate, m the number of annual payments and n the years over which you're going to repay the loan. 

Let's look at an example using the formula. If you have a €150,000 loan at an annual interest rate of 2.50% and you repay it monthly (12 installments a year) for 25 years, each monthly payment will be €672.93. 

Here is the formula, with the sample figures: (150,000x0.025/12)/(1-(1+0.025/12)^(-12x25) = €672.93

With each installment, you pay off part of the interest and the principal on the loan. If you want to know how much each amount represents, you can calculate it as follows:

• To calculate the interest of each installment, divide the interest rate by the number of annual payments and multiply it by the amount borrowed.
• To calculate how much principal you're paying back (amortization), subtract the interest from the monthly amount.

With the calculation system we use (French repayment system), more interest than capital is paid in the first installments and more capital than interest in the last.