Financial institutions have begun to market a new product: negative mortgages. These loans are already a reality in countries like Denmark, where Jyske Bank has started granting ten-year mortgages with an interest of -0.5%. They are also present in Switzerland, although the entities that operate with them recognize that these are specific operations aimed at specific customer profiles, not a generalized practice. In a scenario like the current one, with Euribor at record lows, is it possible that mortgages with negative interest reach Spain?
negative mortgages in Spain
Negative mortgages are loans to buy housing that do not go free to customers
Negative mortgages are, as explained by HelpMyCash.com, loans "for which banks pay interest to the customer, deducting them from outstanding capital." In the opinion of its mortgage specialist, Miquel Riera, it is a commercial policy with which the entities that offer these products “subsidize a part of the purchase to the customer”. However, from this organization they emphasize that this type of loan “does not go free to the client”, since “the banks that commercialize with these loans do not want to lose money, so what they lose in interest compensate it with other costs”, as commissions or associated products.
Estefanía González, spokesperson for Personal Finance of Kelisto.es, shows that the fact that the interest rates in both countries are low explains the maneuver of the banks, “who prefer to make money out of loans with very low loans. cheap that allow them to generate some profit margin ”rather than having the money stopped. “The commissions that carry these mortgages make the bank earn money on the other hand, perhaps less than before, but it is also charging to lend money to consumers,” he clarifies.