Sabadell Group which includes Sol Bank have increased margins above Euribor to 1.90% as a minimum from their previous 1.25%.
The margin includes taking life cover as compulsory and in a move which show another change to their strategy for the first time Sol Bank will differentiate rate based on loan to values.
The increase for loans at 60% or below is only 0.15% with rates including life cover of 1.40% being offered the higher rate now only applies to loans between 60% to 70%.
Whilst maintaining their ability to take on 70% loans this is a clear indication that they intend to manage the portfolio of 70% loans by pricing techniques making the 70% less attractive.
This happened in the same week as one of the banks who are made up of two Cajas and intend to float launched a standard 70% product with pricing from 1.50%. The merged Caixa Nova and Caja Galicia have confirmed a new joint policy of up to 70% for non residents. All applications are agreed on a case by case basis and pricing will reflect the overall profile of the application at 70% with staring margins of 1.50% they will help fill the hole Sol Bank appear to have vacated.