What if the Bank raised the rate on the mortgage???Where to apply? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
Unfortunately, this problem is not a special case. With the beginning of summer, many borrowers who have issued at the time the mortgage loans were complications вЂ“ many banks have raised rates, and significantly. And not all debtors react to this forced banks step so quietly: many are going to appeal to...If the "loan" has become more expensive...What to do to the borrower, if the Bank increases the credit rate on the mortgageFive years ago bought an apartment on credit and now the debt is paid. Income does not reduce the period because five years have to pay. And in June I received a letter from the Bank that the interest on the loan will be higher: I was issued a contract at 12% per annum, and now have to pay 17% for each year. It's still an extra 25%! Now we are a family Council every evening decide what to do next, " says Daniel Kiev Babenko.Unfortunately, this problem is not a special case. With the beginning of summer, many borrowers who have issued at the time the mortgage loans were complications вЂ“ many banks have raised rates, and significantly. And not all debtors react to this forced banks step so quietly: many are going to go to court to demand the return of the old conditions of lending. But there are other solutions to the problem.It depends on how much percent increasedIn the beginning we will understand how the legal actions of the banks. Everyone who was issued a mortgage agreement, you know that this document contains all the basic parameters on which both parties agree вЂ“ and the borrower and the Bank. It is the contract stipulates the amount of debt, interest rate and maturity. And yet there is a condition change of the contract. This document bears the signature of the borrower, so he, a priori, agree that the Bank may take any action unilaterally (in other words, without asking the consent of the debtor).And yet, in a typical mortgage contract features the phrase, giving banks the right to such actions: "the Bank has the right to unilaterally modify or Supplement the terms of the agreement, aiming at the address of the borrower a letter outlining the changes and additions. The changes come into force upon their adoption by decision of the relevant body of the Bank".The fact that the mortgage loan is long, and in 10-20 years the economic situation can change so that the Bank will just "fail". It is for this reason banks and insure themselves against loss of profits, laying in the Treaty, their right to "independence".According to lawyers, this right is controversial because the interest rate is a critical parameter and its change can only occur with the agreement of both parties. And each of them must agree in writing.But there is another opinion: the signature of the debtor under the contract makes his claims with something virtual, like it is, and you can.Therefore, experts advise to consider each situation вЂ“ how increased the size of the bet. If one or two percent, that, in their opinion, it makes no sense to even go to court. After all, the economic situation in the country has really changed, in addition, on the global currency market has also seen some changes, and not in favor of the dollar. So, most likely, even the court recognizes the Bank's actions lawful. If the Bank is "bent" ten percent to the contract rate, you can try to challenge his decision.When to resort to refinancingAccording to the data referenced by "RBK-Ukraine", the average interest rate on loans for housing in June amounted to UAH вЂ“ 20,1%, in dollars вЂ“ 14,48% per annum. Analysts predict that by the end of the year interest rates on hryvnia loans will increase another 2% in dollars and Euro by 1%.But it applies to "new" borrowers. But those who arrange a mortgage before, and recently received a letter from the Bank informing you that you now have to pay more, will have to choose either to accept the decision of the Bank and to pay or to go to court, or urgently to repay the loan. "What nonsense? вЂ“ many will think, because if we were able to pay the debt, whoever overpaid interest to the Bank?".The secret is in the technology maturity. No one advises to go "the neighbors" and to collect, commercials, hundred thousand "green" to pay off the Bank. For such situations there is a refinance loan."Beautiful" title assumes a very simple mechanism: the borrower finds another Bank, the interest which is lower than the new rate, and makes out a loan there. Gets the money and closes the debt in the first Bank. And the loan is already paid to the new lender. However, this version of "drives" overhead вЂ“ after all, the new Bank will not also be free to serve the customer. Then take a fee for opening the account, the issuance of money, etc., that is a Commission.So it is necessary to calculate whether to refinance or it will be cheaper to pay the loan in your Bank, even at the enhanced rate. Analysts believe that to refinance debt is advantageous if the difference in rates is more than 3%. But, again, we need to consider how much time is left until full settlement of the loan.And still have to spend a lot of time вЂ“ in fact a loan, in fact, issued on the new. But if you consider that this is likely to be in the Bank with foreign capital (that they have access to cheap resources in Europe), it is possible to check and borrower and the mortgaged property (apartment, house, etc.) will be "in full"".