Aizkraukles Banka Offers New Conditions for Mortgage Loans

November 10, 2003 / Banking

New lending conditions introduced and interest rates reduced

As from the 10th of November, the available amounts of mortgage loans of Aizkraukles Banka are increased in respect of the value of the security, the mortgage loan interest rates are being reduced, and the mortgage-lending region - expanded. These changes are being implemented in continuation of implementing the bank’s strategy to specialise in the sphere of mortgage lending by rendering the mortgage loans offered by Aizkraukles Banka even more favourable and more available to all residents of Latvia.

New mortgage loan programmes offered

7 new mortgage-lending programmes specially designed to meet the individual needs of various borrowers shall be offered by Aizkraukles Banka as from the 10th of November. Aizkraukles Banka offers specialised mortgage lending programmes for acquisition of housing, housing improvements, acquisition of land as well as for various other purposes secured by mortgaging of housing or land. The new division of programmes was introduced with a view to further facilitating the obtaining of mortgage loans by clients at Aizkraukles Banka, and allowing everybody to choose the most favourable solution to meet the purpose of the borrowing.

Available lending increased in respect of value of the property

Aizkraukles Banka has increased the available amount of loans in respect of the value of the property up to 95% of the value of the property. Thus, for instance, applying to a lending programme ‘First Home Acquisition’ enables the obtaining of a loan of up to 95% of the value of the property, whereas in case of the lending programme ‘Acquisition of Home’ — up to 90% of the value of the property.

Interest rates reduced and flexible discount system introduced

As from the 10th of November, Aizkraukles Banka shall reduce its interest rates on mortgage loans by 0.4% — 1% depending on the type, volume of the loan and other factors.

Aizkraukles Banka is furthermore implementing a flexible system of interest rate discounts that would allow the clients to benefit from up to 1.5% reduction in interest rates. The size of discounts shall depend on the amount of the loan, the value of the loan security and the client’s income. This would ensure a more individual approach to each lending, allowing clients to forecast the scope of discounts applicable in their case.

Lending region expanded

Having regard to the rapid growth of the mortgage market in Latvian regions, Aizkraukles Banka shall hereafter grant loans for acquisition of housing and land not only at, and in the vicinity of, Riga, but also in other economically active regions of Latvia — Daugavpils, Jelgava, Liepaja, Talsi, Tukums, Valmiera, Ventspils, etc.

Aivars Rauska, Deputy Head of the Customer Service Division of JSC Aizkraukles Banka: "Reduction in interest rates on mortgage loans, increasing amounts of loans, implementation of new mortgage lending programmes, expansion of the lending region — all of these represent another steps towards the implementation of the strategy adopted by Aizkraukles Banka, which is mainly aimed at increasing substantially its share in the Latvian mortgage lending market over the few years time from now. Mortgage lending is deemed a prospective business area of the bank, where the increase in competition is anticipated. Therefore, Aizkraukles Banka is offering new opportunities to its clients and putting every effort to raise the confidence of the population in banks, and to encourage using of services and opportunities offered by latter."

Today, Aizkraukles Banka is the sixth largest bank in Latvia according to the volume of assets, and it has granted mortgage-secured loans for 18.4 million lats within the period of 9 months of the year 2003, which is 169.2% more than as of the end of 2002.