On February 1st, many things became final on the front line of foreign currency (and forint) mortgages. The forint was converted and the law on the fair banking system came into force.
The law retrospectively adjusts the interest on existing loans by attaching interest to the prevailing 3-month interbank borrowing offered rate (BUBOR) and stipulating 3-month interest periods. The interest rates on old loans cannot be higher than they were at the start, but the minimum is BUBOR + 1% and maximum BUBOR + 4.5% (currently 6.6%), and the maximum is + 6.5% for free-standing loans.
Well, here’s what I want to say
The law states that for 60 days after the conversion, the loan can be terminated free of charge, even with a bank loan redemption. (MNB Flyer p. 22) Even if the amount and purpose of the loan remain the same, you do not even have to comply with the new legal requirements. (You have 90 days to pay off your cancellation, either on your own or with the credit of another bank.)
That is, you have a great opportunity to get a new loan almost free of charge if it is more favorable to you.
If you are a good debtor, if you do not have an overdraft on your property, or just want a loan that has a fixed interest rate of 3-5-10 years and does not change every three months with the central bank base rate, you may want to look into the market.
(Conversely, if your property is borrowed above 80% of the market price, you have been late for payment in the last half year, if you have no verifiable income, if you are on the BAR list, then it makes little sense to look for a new opportunity.
There is no distinction between multiple replacement loans whether the original loan was for home or free use, so you can save a lot on free use loans.
What are the best deals on the market right now?
– 3 month interest rate: 3.85%
– one year interest rate: 3.92%
– five-year interest rate: 5.17%
(Why a longer interest rate period is lucky, I’ve already written here: Time to fix interest rates.)
So if you already know about the new interest rate hike and you are a better customer because of your income ratio or the size of your loan, it is worth asking for a redemption offer. At most, it turns out that it’s not worth buying for.
(How much you save depends a lot on your original interest rate and depends on when you borrowed it.)
Note that you will or may have costs with the new loan
Such as valuation, notary, etc. Many banks are now releasing them in action, but ask for the exact cost.
In other words, if the new interest rates on your loan are significantly higher than the examples above, you might want to run a round to see what other banks are trying to attract to you.
Yeah yeah, you made the point that I replaced the right-hand advertising agency with a barcode advertisement (which is my brother’s ?) and – I quote – “You can’t reach that credible person right now when you need it.” but in the meantime, click here if you are more interested in credit management than warehouse collectors.