Prosto extremely tempting to take today, mortgage loans, and a couple of years to change the lending bank, and with it the sky-high interest rates on loans to smaller ones.
Should I expect to refinance the mortgage loan and to any "surprises" should be prepared - recognize Prostobank.ua.
Two years ago, in October 2008 according to research company Prostobank Consulting, 12 banks of the 50 largest asset offers a program of refinancing mortgages. Today in the market in an era of sky-high interest rates on mortgage refinancing offers we could not be found. But because interest rates on loans to buy housing is gradually lowered, the appearance of such proposals - just a matter of time.
Nevertheless, there are important features of the refinancing, which you need to know today - like those who have already taken a mortgage loan under the high bid and expects refinancing later, when rates fall, and those who are only going to take credit for housing.
It is not everyone can
The standard scheme lending appears, usually as follows. "The customer, who took a mortgage with one bank, goes to another bank with a request for a new mortgage loan under the same bail. Bank issues a new loan, which is used to pay off old by transferring the entire loan amount in the first bank.
Deposit (apartment or house) is re-registered to the "new" bank and continues to serve as a means of securing a loan, and the client begins to pay for "new" credit on a new, lower interest rate ", - says Max Koshevtsov, head of individual business Ukrainian Development Bank. At first glance, everything is simple, the only difficulty - is the transition of deposit apartment-security against the loan from one bank to another.
"Typically, the issuance of new credit and repayment of the old is a lump sum for an agreed scenario between banks, the borrower and the notary public", - said Sergei Pavlov, head of "Living on credit department for individual business UKRAINIAN BUSINESS BANK.
It is not surprising that the traditional refinancing must occur with the consent of the bank where you took the loan. "At the time of registration of the transaction the notary, who designed the first mortgage, must execute and second. Mortgage by a bank letter (the primary lender) to lift the ban from your mortgage is transferred to the second stage of the mortgage. And once issued a new loan and repaid the previous one, pledge goes out of support for the closure of loan contract and becomes an ordinary collateral on the loan program refinancing "- says Anton Shaperenkov, Director of Marketing Retail VAB Bank.
As a rule, for the refinancing of the above-mentioned way you even have to ask for a written consent of the bank where you took out a loan - after he pledged to your apartment. And around this condition is practically impossible. "Carry perekreditovku without the consent of the bank where the loan is taken, it is impossible. It is written in all loan agreements, and the notary who are drawing up a mortgage, always pay attention to it "- warns Anton Shaperenkov.
At this stage wish to refinancing may encounter the first problem on its way: not every bank will agree to perekreditovku. This position of banks is not surprising: they are not interested to give those customers who are well repaying a loan, because the institution is losing its revenues. According to experts, many banks are likely to agree to an individual program to restructure mortgages, changing the terms of your contract: for example, extending the term of the loan for an additional 5-10 years, which will reduce the monthly payment on a loan (but will increase the total overpayment to the bank).
Prostobank.ua phoned banks that provide mortgages to buy property in the secondary housing market in October 2010 and said they are allowing financial institution after several years of using a credit refinance it with another bank? No employee of the bank is not rejected. However there is one institution we frankly confessed that "100% guarantee can not."
But in other excitedly claimed that "it is possible, mortgage agreement does not prohibit," "because you are still fully repay the loan at the credit funds of another bank, it comes as a complete" prematurely ". A representative of a bank generally proposed in case of falling mortgage rates "apply to the bank for lowering rates, and if he refuses, then you can perekreditovyvatsya in another bank."
Despite claims by banking consultants that refinancing may not forget to check your credit agreement for the fact that there are no points in it that prohibits refinancing, as well as what are the conditions of early repayment of loan (for example, in October 2010 at 2 banks lenders buy mortgages, we found the commission for early repayment).
However, if it comes to refinancing, and your bank will not accept you "let go", you will have another chance to perekreditovku, albeit weak: it will depend on the bank, whose borrower you are going to become. "Given the scheme perekreditovki completely circumvent bank-prime lender is unlikely to succeed is at the stage of registration of a pledge the second stage.
In this case, much will depend on the bank's new lender as it will be ready to take the risk actually unsecured loans even for a very short time (within 1-2 days) ", - said Taras Bloschanevych, head of retail customers of the Department's active Bank's operations "Kiev". "Refinancing without the consent of the bank can make, if the new bank is willing to take risks and to give credit to the borrower with a condition precedent to provide security (which is usually unacceptable to the banks).
If a good customer chooses another bank and go - it is always unpleasant "- confirms Sergei Pavlov. Thus there is an amusing contradiction - the banks will be happy to get rid only of unreliable borrowers, and just such customers do not want to refinance the new financial institution.
If you want to - patched
Another feature of the refinancing, which could be a surprise for you - this is the additional financial cost. It is possible that you have to pay a new fee for bank loan application, loan fees, for opening and maintaining the loan account.
"Additional costs will be associated with the notarization of a collateral agreement, making the state registers encumbrances of property information on the subject of the pledge, spending on insurance, as necessary in the insurance contract to change the name of the beneficiary (from one bank to another) or to insure the collateral if it is not insured.
In addition, the previous bank may establish a fee for granting permission to re-pledge "- adds Oksana Adamenko, Deputy Head of loan operations support Pivdenkombanka. Subtleties associated with insurance, deserve special mention.
"Insurance - it's the only thing than can save you - convinced Taras Bloschanevych. - The insurance company most likely will be an agreement at no additional cost - there's just you change the beneficiary. " However, this law - not universal. It may happen that the new bank will require registration of the policy in other UK accredited institution.
But this potential financial "surprises" do not stop there. "The Bank conducts mandatory inspection of the property, pledge, and can evaluate its lower than the borrower's bank" - warns Maxim Koshevtsov.
Because experts advise before deciding to refinance carefully calculate the possible benefit from this and remember the universal law: if the stakes in both banks differ by less than 3 percentage points, then refinancing just does not make sense.
Or, better floating rate?
A good outlet for supporters of the view that mortgages will soon significantly cheaper - to use an adjustable rate loan. Indeed, in this case with the reduction in the cost of resources for the bank will reduce rates on the loan - and there will be no need for refinancing.
And this in turn will lead to the fact that do not have to pay extra costs when you make a new loan. By the way, experts believe that the first refinancing program will run the banks that offer variable rate mortgages.
"Those banks that are now offering loans with floating interest rate, I think, will soon be offering and refinancing, because it gives an opportunity to attract customers with good credit history. A channel for obtaining new clients is not so much in this market ", - said Anton Shaperenkov. - I would recommend that borrowers take a mortgage loan at a variable rate with no hope of refinancing, knowing that interest rates on loans for the period of the mortgage may fall as well as go up if it is more expensive cost of funds. "
However, it is this unpredictability of the floating rate fraught with risks: if you do not have confidence that in the next 20-30 years, the financial crisis will not, therefore resources for the bank did not rise, then your choice - it is a stable rate that banks still increase in unilaterally prohibited by law. And then maybe - refinancing, when the banking system recovers from the crisis.
Importantly, do not forget to know up front the bank's consent for this procedure. "Banks in the event of changes in market conditions, most will be willing to negotiate a reduced rate through debt restructuring, rather than let a good, disciplined customer" - says Taras Bloschanevych, head of retail customers of the Department's active operations of the bank "Kiev".