Bankinter abre la veda de las alzas de precios hipotecarios en la banca

Spain's Bankinter has lifted price caps on mortgage rates in the banking sector, according to recent reports. Following the summer truce, banks have adjusted their strategies to align with the new interest rate environment, with the euro interbank rate reaching its highest level in two years. Despite a slight easing from October's peak, the provisional monthly average of the mortgage index remains above 3.2%.

Bankinter was the first to react to the new monetary rules, raising the cost of its mortgages across all modalities. In the star segment, fixed-rate mortgages saw a cost increase from 3.81% to 4.12% TAE (annual equivalent rate) for a 25-year term with the maximum rebate. Simultaneously, their savings portal Coinc raised the fixed-rate price in the same term from 3.45% to 3.76%.

Variable-rate mortgages saw a 2.3% to 2.5% increase for the initial three years of the 25-year term. Bankinter and Coinc now rank among the most competitive variable-rate providers, but they lag behind in the fixed-rate segment. Bankinter has been cautious in Spain's mortgage market, with first-half production down 34% year-over-year, and expects the trend to continue in the second half of the year.

The bank is more aggressive in Portugal and Ireland, where it believes the portfolio performance and business potential are stronger. Other major players like Sabadell have also raised the cost of their fixed-rate mortgages, with Bankinter increasing its fixed-rate cost from 3.58% to 3.67%. Meanwhile, Kutxabank has raised its variable-rate initial fixed rate from 2.07% to 2.27%, offering the best differential over the euro interbank rate at 0.49%.

These moves aim to protect banks' margins as interest rates rise across the eurozone, with the European Central Bank (ECB) expected to raise rates by 25 basis points at its October meeting or possibly in December.