The overall variable interest rate consists of the variable interest base and the interest margin set for the client individually.
Bank applies the following interest base options:
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The variable interest base changes every six months, therefore, your overall interest rate may increase or decrease depending on the change in the interest base. When selecting the variable interest rate you have to consider that the fluctuation of the interest rate in certain period can markedly increase your monthly interest payments to the Bank. In order to ensure proper fulfilment of financial obligations, the Bank recommends that you allot no more than 30 to 40% of your income for that purpose.
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Interest margin set for the Client
The interest margin is calculated for each Client on an individual basis.
The interest margin is set upon consideration of the following factors:
- Your credit history;
- The value and liquidity of the property mortgaged;
- The loan term;
- The selected interest base etc.
Responsible fulfilment of current financial obligations and your credit history are important factors affecting the size of the margin:
- At conclusion of the loan agreement as a lower margin is usually set for clients with good credit
- Throughout the loan term as you can influence the home loan margin by your responsible behaviour.
Depending on your credit history, the margin set in the loan agreement may be subject to review at two-year intervals. The margin will not be changed if, during the past two years, there were no repeated delays and/or longer than 15-day delays in making payments under financial liabilities to the Bank and/or companies of the Bank‘s Group.