After a long period of very low or even negative interest rates, the sharp increase in inflationary pressures recorded in recent months forced the European Central Bank to rapidly increase its key interest rate, in order to contain these pressures.
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The rise in interest rates, due solely to the change in monetary policy, automatically weighed on variable rate loans, including mortgages.
Understanding this new reality and taking into account the fact that our customers have already made a great effort to remain consistent with their mortgage loan obligations, last March Eurobank Cyprus proceeded to temporarily reduce the margin of the Bank's Basic Mortgage Interest Rate by 50 basis points (0.50%). strong>additional support initiative,but also to reward its customers, private consistent borrowers, with a further reduction in mortgage interest rates with a floating interest rate linked either directly or indirectly (through the Bank's base rates) to EURIBOR, with the important cost of this action to be borne exclusively by the Bank.
Specifically, for the period from 01/06/2023 to 31/5/2024, the Bank will reduce the final interest rate of mortgage loans that will be included in the program by 50 basis points (0.50%). The reduction will be calculated at the end of each month and at the end of the 12-month plan period, the total amount of the reduction will be refunded to customers by deposit to their checking account.
The program will include all natural persons borrowers of mortgage loans for the purchase or construction of a first home, which are invoiced with a floating interest rate linked either directly or indirectly (through the Bank's base rates) to EURIBOR and independent of the market value of the first residence. The program includes both existing mortgages and new mortgages with a variable interest rate that will be disbursed during the 12-month duration of the program. A basic condition is that the eligible loans are presented as serviceable throughout the duration of the program.
It is clarified that the above change does not affect or modify, in any way, the margin (margin) provided for in the corresponding agreement credit facility of each customer separately.
All eligible borrowers will automatically join the program without requiring any action on their part, while they will also be informed individually.
This action also proves put into practice the perennial interest of Eurobank Cyprus in supporting Cypriot households by undertaking initiatives that respond to the current economic conditions.
Source: eurokerdos.cyprustimes.com
