Barclays Subsidized Bank Exchange Mortgage

A few months ago, Barclays launched the Banco Cambio Mortgage. Now the entity has modified not only the name of the product but also some basic conditions such as the final interest rate.

Although it continues with the policy of assuming the costs of notary, registration, and management that the change of entity would entail, up to a maximum of 3,000 euros, the Subsidized Bank Exchange Mortgage offers the interest rate at Euribor + 0.33%, although it must meet a series of requirements:

  • Have payroll or pension domiciled?
  • Have contracted Home Insurance at Barclays.
  • I have taken out Life Insurance at Barclays.
  • Minimum annual use in purchases of €2,000 with a Barclays Credit Card.
  • Make an annual contribution to a Pension Plan of at least €600 and/or a subscription to Barclays Investment Funds of at least €600 and/or have taken out Payment Protection Insurance.

With an annual review, the interest rate will be increased in its spread (Euribor+0.33) by 0.15 points up to a maximum of Euribor + 0.99 if these requirements are not met.

The maximum term is up to 35 years, and the amount may not exceed 75% of the appraised value of the home.

Regarding commissions:

  • Opening commission: €0.
  • Compensation for withdrawal: 0% in case of partial repayments. 0.50% for the first five years of the life of the loan and 0.25% for the rest in the event of full repayment.

This product gives you free access to Telephone and Internet Banking.

A product that requires too much linkage, although you have the option of not accepting the products, will apply an interest rate of Euribor +0.99, which does not seem so bad if you only have to take out life insurance.

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