United Bulgarian Bank (UBB), part of KBC Group in Bulgaria, expands its range of mortgage loan products for individuals with a fixed interest rate over an initial period and a variable interest rate for the remaining loan tenor. Based on the new proposals from UBB users can apply for a mortgage loan with a fixed interest rate over the first 3, 5 or 10 years, regarding residential purchase loans and with the purpose of refinancing a mortgage loan for purchase from other banking institutions.

The loan amount at a fixed interest rate depends on the period selected by the client for using a fixed interest rate (over the first 3, 5 or 10 years). The variable interest rate for the remaining tenor is defined as the sum of the Reference Interest Rate according to the UBB Methodology, available on its webpage, and a fixed margin, upon which calculation there are options for interest rate (price) discounts, in accordance with the client’s individual profile.

Credit products with a fixed interest rate provide their users with higher predictability while planning their servicing costs. UBB also offers on the market consumer loans with a fixed interest rate over the entire loan tenor and now expands this scope and the interest rate for the initial period to cover mortgage lending, too.

Mortgage loans with a fixed interest rate over the first 3, 5 or 10 years are being offered in all more than 170 branches of the Bank throughout the country. There customers can obtain detailed information and professional consultation, tailored to their individual financial profile, in order to be given a proposal that suits them most.

More information about mortgage loans with a fixed interest rate for the first 3, 5 and 10 years, offered by UBB, is available here.

Illustrative example of a mortgage loan for purchase, having a fixed interest rate over the first 10 years and a variable interest rate over the remaining loan tenor:

Annual Percentage Rate (APR) of 2.99% upon a loan with a fixed interest rate of 3.10% for the first 10 years and a variable interest rate of 2.28% (Reference Interest Rate* + 1.69% fixed margin) for the remaining loan tenor, repayment in 120 monthly repayment installments, each amounting to EUR 533.77 / BGN 1043.96 over the period with a fixed interest rate, and 240 monthly repayment installments, each amounting to EUR 495.27 / BGN 968.66 over the remaining loan tenor.  Total due amount of the insurance premium for the loan period: EUR 2757.32 / BGN 5392.85. (tentative amount). Total amount due EUR 186 834.75 / BGN 365 417.01.

This example has been calculated for a loan of EUR 125 000, over a tenor of 360 months, and includes the following fees: fee for documents-based analysis of the collateral - EUR 127.82/ BGN 249.99; fee for opening a current account to a “For Salary” package EUR 0 / BGN 0 ; fee for maintenance of a “For Salary” package EUR 2.25 / BGN 4.40 per month; fee for real estate/apartment appraisal EUR 192 / BGN 375.52, mortgage obliteration fee of EUR 30.68 / BGN 60.00; with an included annual insurance premium per real estate under a Property Insurance, calculated as a % of the sum insured, equaling the outstanding loan principal.