BOV makes Home Loans more affordable
Special limited offer announced
Bank of Valletta announced a special offer on its HomeFirst and HomePlus offerings. This offer, which is valid until the 30th June, will see the interest rate reduced on both loan products.
The interest rate for the HomeFirst is now being discounted to 3.00% for loan amounts up to €350,000. The same offer is being applied to the HomePlus Package. In the latter case, where the value of the loan is greater than €350,000, the applicable interest rate is of 3.15%.
Speaking about this initiative, Edward Grech, Chief Officer Consumer Finance at Bank of Valletta, explained, “This special offer on the bank’s main Home Loan products comes only a few weeks after a similar special offer was launched on the BOV Personal Loan. These offerings bear witness to the fact that at Bank of Valletta, we actively seek to design and modify financial solutions that address our customers’ circumstances at particular life stages. This special offer is in response to feedback we receive from the market through research we conduct with our customers on a regular basis.” Mr Grech went on to explain that the bank’s current practice of a fixed interest of 1.99% for the first twelve months for loans up to €350,000 remains valid.
The HomeFirst is addressed to individuals or couples taking up their first mortgage with the bank. For customers seeking a mortgage to purchase their second home, the HomePlus package applies. Anyone who is interested in learning more about this offer may visit the bank’s website www.bov.com, from where they may also use the Home Loan Calculator. Alternatively one may contact the bank’s Customer Service Centre on 2131 2020 or visit any BOV branch.
Representative example of a HomeFirst 1.99% p.a. offer facility based on a loan amount of €200,000 being made available to a first-time buyer at a fixed interest rate of 1.99% for the first 12 months and a variable interest rate of 3.00% p.a. for the remaining 408 months. The APR will be 2.983% p.a. The loan will be repayable in 12 equal monthly instalments of €664.34 and 408 equal monthly instalments of €771.53 over a term of 35 years. The total sum payable throughout the term of the loan assuming the variable interest rate remains unchanged will be €323,146.32. The total sum payable throughout the term of the loan if the fixed rate is not available would be €325,621.20. The fixed interest rate may therefore result in savings of up to €2,474.88. This fixed rate will not change during the term of 12 months and is available for a limited period of time. Applicable charges on this loan are as follows - fully refundable processing fee of €600; a flat legal fee of €150; no booking fee; updating of searches fee of €20 and a closing of account fee of €100.
Representative example of a HomePlus 1.99% p.a. offer facility based on a loan amount of €200,000 being made available at a fixed interest rate of 1.99% for the first 12 months and a variable interest rate of 3.00% p.a. for the remaining 408 months. The APR will be 3.006% p.a. The loan will be repayable in 12 equal monthly instalments of €664.34 and 408 equal monthly instalments of €771.53 over a term of 35 years. The total sum payable throughout the term of the loan assuming the variable interest rate remains unchanged will be €324,016.32. The total sum payable throughout the term of the loan if the fixed rate is not available would be €326,491.20. The fixed interest rate may therefore result in savings of up to €2,474.88. This fixed rate will not change during the term of 12 months and is available for a limited period of time. Applicable charges on this loan are as follows - processing fee of €600; legal fee of €420; no booking fee; updating of searches fee of €20 and a closing of account fee of €100.
In both examples, in order to obtain the credit, you will also be required to pledge, in favour of the bank, a life assurance policy covering the loan amount being financed, and a buildings replacement policy, the cost of which cannot be determined in advance. In the event of nonobservance of the commitments linked to the credit agreement, you may risk losing the immovable property. Terms and conditions apply. All loans are subject to normal Bank lending criteria and final approval from your BOV branch.