OREANDA-NEWS. The Bank of Moscow has announced material changes in the House Building Mortgage Loan Programme.

Under the new conditions the minimum amount of one tranche has been reduced in Moscow and Moscow Area to 300 000 RUR, and in other regions to 170 000 RUR while the amount of the first tranche has been increased to 40% of the appraised value of the mortgaged property with the second and subsequent tranches being increased to 65%. Now the second tranche can be received right after the first repayment under the loan.

In addition an opportunity has now appeared to take into account not only the borrower’s income but also the income of the borrower’s spouse including a civil spouse, and that of the kith and kin; the requirements to land plots to be pledged have been simplified and an opportunity has been added to remove encumbrances from the additional pledge, i.e. a flat.

"Making material improvements to the House Building Mortgage Loan Programme we expand opportunities for our clients and make our unique product more attractive and accessible," commented Georgy Ter-Aristokesyants, Director of the Mortgage Lending Department of the Bank of Moscow.

No down payment, cost-estimates and permit for construction are required to receive the House Building Loan; the land plot and any other real property can be used as a pledge; the lending ceiling is up to 200% of the appraised value of the pledge. Within the framework of one credit line up to five tranches can be extended. Interest is accrued not on the whole approved amount of loan but on the actually used amounts only. In addition the long-term, up to 30 years, maturity periods make it possible to receive a large amount of money without overburdening the family budget.