Although only April 2015 is available until the settlement letters on the conversion of foreign currency loans have been received, banks have already offered loans that offer lower installments than forint loans, depending on the customer’s choice.
We at Good Finance show you which bank offers the currency redemption products of forint foreign currency loans so far.
I do not want to read any more, I am interested in the above positives
As a result of automatic forint conversion, banks replace foreign currency loans with forint loans. However, in this case, our “new” credit will be converted into HUF at centrally defined terms. If you do not like these conditions, fortunately, banks will be able to offer much more favorable loans to adapt to the current interest rate environment, which you can use to redeem your loan.
And now, according to the law, we can cancel our loan for free. In fact, there are banks that specifically target foreign currency lenders with their loan replacement products.
How much smaller is our repayment installment when redeeming foreign currency loans after HUF conversion?
Can save a lot on installments by choosing the right mortgage loan
Nowadays, almost all financial institutions have available mortgage redemption loans to reduce the installment, but so far only a few banks offer a solution specifically for settlement mortgages.
However, there are important conditions for using the loan, which not all mortgage lenders affected by forint conversion can meet.
Based on information published so far, these conditions for mortgage loans (home loans or overdrafts) are:
- The loan amount shall not exceed 80% of the market value of the property
- The debtors were not late in repaying them
- The client did not enter the currency barrier
- There is no other burden on the property offered as collateral
- The property has a maximum of two owners
What is a better loan than a simple loan?
In the present situation, banks will often waive fees associated with the conclusion of a loan redemption agreement or provide a discount on fees or interest for the purpose of acquiring a customer.
Discounts are so diverse that there is no one-size-fits-all offer, as banks are very careful about who they are giving them their discounts to. In practice, they bid based on the customer’s past behavior, background, and current credit.
Important information is that you do not need to meet the Yield Repayment Ratio (JTM) if your new loan is forint-based, with the same purpose and amount as your old loan.