AstroBank, a Cypriot lender, has unveiled a new initiative aimed at assisting vulnerable borrowers by freezing the base interest rate for first-time homebuyers.
In a statement, the bank announced its program to reward borrowers who make timely payments on their housing loans. The key feature of the program is the freezing of the Base Interest Rate, encompassing both the European Central Bank (ECB) and Euribor rates.
The program specifically targets first-time housing loans with a maximum value of €350,000, which are linked to either the Base Interest Rate of the ECB or Euribor. It is set to be effective from June 1, 2023, until December 31, 2023. During this period, the base interest rate for eligible borrowers will be fixed at 2.75 percent, covering both existing loans and those disbursed within the program's timeframe.
AstroBank emphasized that the primary requirement for inclusion in the program is the absence of any payment delays on the first-time housing loan during its implementation. Additionally, borrowers who settle any overdue payments on their housing loans with AstroBank by June 30, 2023, will also qualify for participation. To remain enrolled in the new pricing program, borrowers must ensure that their housing loans do not incur any payment delays throughout the program.
The bank assured that eligible borrowers will be automatically enrolled in the program without the need for any action on their part. They can contact the bank's branch network to receive information regarding their reduced loan interest rate and corresponding installment.
AstroBank acknowledged the challenges faced by its customers due to inflationary pressures and interest rate increases by the European Central Bank in recent months. In response to calls from the Minister of Finance, the bank deemed it necessary to support its vulnerable customers during this difficult period. As a result, the bank will absorb any additional interest rate hikes during the program's duration.
The program is a testament to AstroBank's commitment to assist vulnerable borrowers and provide relief in the face of economic challenges. By freezing the base interest rate, the bank aims to alleviate the financial burden on first-time homebuyers and support them in maintaining timely repayments on their housing loans.
By fLEXI tEAM