Mortgage loan with temporarily fixed interest rate available in Bank Millennium
Bank Millennium has launched a mortgage loan with temporarily fixed interest rate. Customers can now choose between a loan with fixed interest rate and loan with variable rate. The interest rate on the fixed rate loan shall remain unchanged for 5 years, irrespective of any changes of interest rates on the market, with possibility to take this option again for the next 5 years. During validity of the fixed loan interest rate the loan instalments remain fixed.
– Our new offering responds to the needs of customers. In an environment of variable interest rates a group of customers arose, who are interested in having a stable level of monthly burdens. Thus we prepared a proposal in the form of loan instalments, which are fixed during 5 years, irrespective of changes of interest rates. The offering is available from Bank Millennium and also from agents working with the bank – Anna Meunier, Head of Mortgage Loans Sub-unit in Bank Millennium, said. – This will be a good alternative for customers who appreciate stability and a fixed level of monthly payments, also being an opportunity to themselves decide about the type of loan interest rate – Anna Meunier added.
After the end of the period of validity of the fixed rate, the loan interest rate will change automatically to a variable rate, based on WIBOR and the margin, defined in the loan agreement. If the customer will want to have a fixed rate for the next 5 years, this will be possible, just requiring that the bank is given adequate notice. The bank will then propose the new interest rate, valid at the time of submitting the request, for the next 5-year period.
The new offering of the bank is compliant with the amended Recommendation S, which will apply to banks from 30 June 2021. Bank Millennium has adjusted its offering to the requirements of Recommendation S ahead of schedule.
Last Updated on March 25, 2021 by Karolina Ampulska