BBVA Fixed Mortgage

You choose your mortgage's repayment term, up to a maximum of 30 years. Remember that the sum of the age of the youngest account holder and the term cannot exceed 75 years. For example, if you are 50 years old, the maximum term would be of 25 years.

Please note that if the date of signature does not coincide with the day of payment, there will be a first installment that only includes the interest corresponding to the period from the date of signature to the day of payment.

You can pay off your mortgage 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 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.

If you have repayment insurance and you pay off the entire loan, your insurance will be interrupted. If you have paid your insurance for longer than your mortgage lasted, you will be refunded the difference.

Alternatively, you can transfer the insurance to a new beneficiary within seven business days.

A discounted interest rate on a mortgage loan is a benefit that usually involves paying a lower interest rate than that agreed, due to taking out other products or services (direct deposited salary, insurance, etc.) from the same bank, as long as the agreed conditions for applying this discount are met. If the borrower fails to comply with said conditions, the discount will be nullified.

The amount of the interest rate discount on a mortgage loan will depend on the conditions and limits established by the Bank, as well as on the type and number of products or services that are taken out. To find out more about how it works, we recommend contacting the bank.

To reduce the interest rate of your BBVA mortgage, you can take out the following additional products.

With Discount A, you can benefit from a 0.5% discount on the interest rate if you take out and maintain the following products with BBVA:

• Salary of over €600 or pension of over €300. If you are self-employed, you just have to direct deposit your Social Security self-employment payment (not including the direct deposit of mutual fund payments or other social welfare systems).
• BBVA Allianz Seguros Comprehensive Home Insurance policy in force and its payments up to date.

With Discount B, you can benefit from a 0.5% discount on the interest rate if you take out the following product with BBVA:

• Loan repayment insurance with BBVA Seguros. The contract must cover at least half of the mortgage amount. If the 50% exceeds €150,000, this amount is enough. If you meet the conditions of Discount A and Discount B, both are added together and you will obtain a total discount of 1% on your mortgage's interest rate.

Remember that the insurance policies are subject to approval by BBVA Allianz Seguros and BBVA Seguros. The products taken out from BBVA will be reviewed annually for the duration of the loan. To be eligible for the discount, you must also stay up to date with your payments and not have any outstanding debts with the Bank.

For insurance companies

• BBVASEGUROS, S.A., de Seguros y Reaseguros, listed in the Register of the Directorate-General for Insurance and Pension Funds under code C-502.
• BBVA ALLIANZ SEGUROS Y REASEGUROS, S.A., listed in the Register of the Directorate-General for Insurance and Pension Funds under reference C0807.
• Broker: BBVA MEDIACIÓN, OPERADOR DE BANCA-SEGUROS VINCULADO, S.A., listed in the Special Administrative Register of Insurance Brokers of the Directorate-General for Insurance and Pension Funds under registration number OV-0060. With liability insurance arranged and sufficient financial resources.

The BBVA Fixed 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 current 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.

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

APR (Annual Percentage Rate) provides the cost of a financial product, such as loans, and includes both the interest and the various costs and fees associated with it. This figure lets you compare different mortgages, because the lower the APR, the cheaper the mortgage.

Buying a property involves two types of expenses: those associated with the mortgage loan and others with purchase and sale transactions.

Mortgage loan expenses are paid by the bank: registration, notarial fees, processing and stamp duty (AJD). In the Basque Country, the taxpayer is always the customer, and regional laws require the buyer to pay the stamp duty.

The bank will bear the cost of the notarial fees for the mortgage loan deed. By contrast, any copies will be paid for by the party that requests them. 

The 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, VAT, and inheritance tax) and the administration, notary public, registration and simple copy costs.

The buyer pays for the appraisal.

To apply for a mortgage (fixed-rate or variable-rate) for a house or apartment that will be your main residence, you must follow these steps:

1. Complete the application with your personal and financial details.
2. Select if you are going to add other BBVA products to lower your monthly payment.
3. An adviser will contact you to answer any questions and let you know what documents you need to provide to evaluate your mortgage application.
4. We will analyze the documents to determine the viability of the mortgage.
5. If everything checks out, the next step will be to appraise the property.
6. If the mortgage is approved for the home, all that is left is to sign the documents in the presence of a notary.

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

• Pre-contractual Information Sheet (FIPRE)
• Only for Andalusia: Supplementary pre-contractual information (DIPREC)
• Informative poster 
• Information Document: CBP RDL 6/2012 for the viable restructuring of mortgage-backed debts, and CBP RDL 19/2022 and ACM to alleviate the rise in interest rates on mortgage loans on primary residences

Your BBVA adviser will also answer all your questions and accompany you throughout the process. Once the study is complete and the loan is deemed feasible, your adviser will give you the European Standardised Information Sheet (ESIS).

They are calculated using the French repayment system. 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 amount borrowed, i is the annual nominal interest rate, m is the number of annual payments and n is the years over which you will 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.

We remind you that in the type of system we use (French repayment system), more interest is paid in the first installments and less in the last.

If you fail to meet your payment commitments, you could lose your home. Remember that the mortgage holders must respond to BBVA with all their assets and rights, current or future. If another person provides a guarantee (e.g., a guarantor), they will have the same responsibility as the mortgage holders, unless otherwise indicated in the contract. 

Remember that when you take out a mortgage, you establish a relationship with the bank. This relationship comprises two elements: The main loan agreement and the mortgage. Let's take a closer look at these terms: 

• Main loan agreement: this document is produced when a financial institution (the creditor) lends an amount of money to someone (the debtor).
• Mortgage: The debtor (or another person) offers property as a guarantee that the loan will be repaid. Therefore, if the agreed payment commitments are not fulfilled, the bank can sell the property in a public auction to collect the amount owed. If the sale results in excess money, this amount is used to pay other creditors or, failing this, the debtor.