Ural Bank for Reconstruction and Development offers mortgages for dwellings under construction

31 July 2008 (10:36)

The Ural Bank for Reconstruction and Development came up with a new mortgage offer for its customers: private individuals can now apply for a loan that allows one to buy an apartment in the building currently under construction, the bank’s press officer reports.

The program differs nicely from its many counterparts in that it provides for some of the market’s lowest interest rates for the construction period. The interest comes to 14.25% to 15.25% a year while the apartment is still being built (no collateral is required) and to 12.5% to 13.5% a year after the finished dwelling can be provided as the collateral for the loan. In addition, borrowers can choose between fixed and floating interest rate after their ownership right over the apartment has been officially registered by the state.

As far as the terms of the mortgage are concerned, one advantage of this loan type is that one is allowed to provide one’s income statement in a more flexible format than banks normally require; the loan periods come to ten or twenty years, and a borrower can always go for an early repayment from the very first month with no extra charges or fees. What is more, one does not have to provide any collateral or a guarantee before the apartment is finished. The bank’s decision to give a customer a loan is valid for three months.

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