The Bank lowered its mortgage loan interest rates

From 15th February the Bank has changed the terms of its own mortgage programs for purchase of accommodation in the primary and secondary markets. The maximum loan period has been increased to 25 years for purchase of both accommodation under construction and ready accommodation. Now the initial contribution under both programs is 5%. Besides, the Bank issues an accompanying loan to cover the first contribution. The Bank has also cancelled the moratorium on earlier repayment of the mortgage loans and increased the number of possible co-borrowers to 4 people, from whom 2 people can be in no relationship with the main borrower.

The interest rates have become differential; now they depend on the value of the first contribution and the loan period. Thus, if the accommodation is purchased in the secondary market, the interest rate accounts for 10.9% to 12.5% per annum in rubles and 9.9% to 11% per annum in USD. The interest rates of the mortgage loans issued for purchase of accommodation in the primary market under the joint program with the developers have been also changed: 10.9% to 13.5% per annum in rubles and 9.9% to 14% in USD. The interest rate of the EUR loan has remained at the same level of 10-11%.

Moreover, the Bank has changed its loan fees: it charges 1,500 rubles for review of the loan application and 0.3%, but not less than 5,000 and not more than 15,000 rubles for issue of the loan. The application will be reviewed free of charge for the customers of the real estate and brokerage companies who have signed the cooperation agreements with the Bank.

“We have revised completely the terms of the mortgage loans issued by Bank “Saint Petersburg”. In our opinion, now the mortgage programs have become more flexible and adequate to the present economic realities. Our Bank has entered confidently the top 5 banks by the number of loans issued in Saint Petersburg. The aims put before the Bank in the current year are not less serious. Beside the priority programs – issuance of loans for purchase of accommodation in the secondary market and houses under construction, the Bank is preparing to launch new lending programs, Head of Mortgage Lending Development in Bank “Saint Petersburg” Dmitry Soloviev commented the information. – Opening of a specialized Mortgage Centre scheduled for the 2nd quarter of 2007 will assist in development of the Bank’s mortgage business. Nevertheless, Bank “Saint Petersburg doesn’t intend to refuse from the advantages of a developed network of branches, offices and additional offices either.”