The total interest rate for these loans consists of a variable interest base and an interest margin set for each customer.
The interest margin is calculated individually for each customer and depends on your credit payment history, the sustainability and continuity of your income in the long term, the liquidity of the mortgaged property, etc.
Interest base
The Bank applies the following interest bases:
For more information on the Country Economic Indicator, click documenthere.
The Variable Interest Base changes every 3/6/12 months, so the total amount of interest you pay may decrease or increase depending on the change in the Interest Base. Currently, only the 6-month part of the variable interest rate applies when signing a new loan agreement or when changing the interest rate under an existing loan agreement to a variable interest rate. The different maturity base is only applicable to loan agreements previously concluded where a different maturity base is already in place. When choosing a variable interest rate, it is important to take into account that the volatility of this interest rate during certain periods may also significantly increase your monthly interest payments to the bank due to the increase in the variable part. In order to ensure that you meet your obligations properly, the Bank recommends that you allocate no more than 30-40% of your income to meeting your financial obligations.
Find out today's Interest Base Rates here.
In the event of arrears or material breaches of the terms of the Loan Agreement, the Bank has the right to unilaterally change the interest margin. The margin will remain unchanged provided that there have been no recurrent and/or more than 15-day delays in the repayment of financial obligations to the Bank and/or the Bank’s group companies during the previous two years and there have been no breaches of the material terms of the Loan Agreement.
The long-term variable rate is fixed for a period of up to 5 years (for a new loan agreement currently being signed, or for a change in interest rates under an existing credit agreement, and for a long-term variable rate, the 5-year fixing period for the long-term variable rate applies). At the end of this period, the interest shall automatically change to a variable interest rate or, by agreement between the parties, the long-term variable interest rate may be reset.
The long-term floating rate may be fixed:
- by signing a new Contract, provided that the maximum drawdown period is 2 months from the date of the binding offer of credit and provided that the amount of the loan is disbursed within one day.
- for loan agreements already concluded, only after the full disbursement of the loan or at the end of the disbursement period.
In the case of a mortgage loan with long-term variable interest, the monthly instalment does not change during the period of your choice. However, it must be taken into account that at the time it is set, the long-term variable interest rate is higher than the variable interest rate applicable at that time.
Also, early repayment of a loan or part of a loan without the expiry of the interest fixation period or the maturity of the long-term variable interest, a change of the type of interest from long-term variable to variable or a change of the maturity of the long-term variable interest shall be subject to the charges set out in the Bank’s Fees for Services and Operations.
Choosing a long-term variable interest rate does not guarantee that you will pay less interest over the life of the loan, but it does allow you to pay the same fixed monthly payment as the economy changes and helps you to better plan your financial flows.
| Service or operation name |
Fee, EUR |
| Fee for concluding the agreement |
| Loan administration fee, fee for increasing of a loan amount |
0.4 % of a loan amount (minimum EUR 180) |
| Fee for amendments to the agreement |
| Fee for change of loan conditions1 (loan maturity, collaterals, etc.) |
EUR 180 |
| Fee for setting of a grace period |
EUR 90 |
| Fee for change of interest rate |
0.4 % of taken and outstanding loan amount (minimum EUR 180) |
| Change of interest type from fixed to variable interest, or change of interest fixation term, or change of long-term variable interest2 term3 |
X% (minimum - 1.5 %) from outstanding amount of the loan the terms and conditions of which are being changed For the purpose of calculating the variable X, coefficient 0.084 is multiplied by the whole number of months remaining until the end of the interest fixation period or, respectively, until the end of period of the long-term interest fixed for a period exceeding 12 months |
| Early loan repayment fee |
| When at the moment of early loan repayment the loan is charged a variable interest rate fixed for a period not exceeding 12 months |
No fee. Minimum early repayment amount shall be not smaller than EUR 3004 |
| When at the moment of early loan repayment the loan is charged a fixed interest rate or a long-term variable interest rate |
Compensation amount (C) shall be calculated in accordance with the procedure set forth in Annex 1 |
| Other fees |
|
| Fee for granting the approval for remortgage (conditional mortgage) to another creditor5 |
EUR 150 |
| Late payment charge for the outstanding part of the principal and for unpaid interest |
0.05 % per each delayed day |
| Additional services |
EUR 45 |
Comments:
1 Fee for change of the agreement shall not apply in the following cases:
- when a long-term variable interest rate is charged for euro-denominated loans where not more than 1 (one) month has elapsed after the end of the loan use period;
- for change of the servicing bank account;
- for change of repayment day;
- when the property being mortgaged/already mortgaged to the Bank is insured by the Bank;
- when the loan repayment schedule is changed upon early repayment of a part of the loan and the loan balance is arranged over the residual maturity of the loan;
- setting of a grace period for 4 months when borrowers receive 10% or 20% subsidy for existing Mortgage Loan with State Support;
- setting of a grace period upon early repayment of a part of the loan according to the loan agreement concluded before 12 May 2008, provided that no arrangements on the change of its terms and conditions (except for the agreement on property insurance) have been signed after the specified date;
- setting of a grace period when according to the loan agreement concluded from 12 May 2008 or according to the loan agreement regarding the amendment of terms and conditions of which arrangements were signed after the specified date (except for the agreement on property insurance), where the early repayment amount is not smaller than EUR 3006;
- loan agreement termination arrangements when borrowers have paid the loan administration fee of the established amount after conclusion of the loan agreement and the loan has not been granted.
In individual cases higher fee for change of loan conditions may apply.
2 Before entry into force of the Law of the Republic of Lithuania on Credit Relating to Real Property, interest fixed for the period exceeding 12 months, but not for the entire loan maturity, was considered to be fixed interest. As from 1 July 2017, such interest is designated as “long-term variable interest”.
3 No fee is charged when, upon expiry of the term specified in the loan agreement, the long-term variable interest specified in the loan agreement is changed into variable interest in accordance with the terms and conditions of the loan agreement.
4 Were the amount obtained by dividing the outstanding amount of the loan by residual maturity (in months) is smaller than EUR 300, the borrower shall have the right of early repayment of such part of the loan which is smaller than EUR 300.
5 Where the reason for the approval of remortgage is the sale of the mortgaged property to another person who must mortgage such property in order to secure the repayment the loan being taken, the granting of such approval shall be charged a fee as specified in the common Service and Operation Fees of the Bank for the issue of certificates (about loans being granted / already granted / repaid loans.
Annex 1: Compensation amount (C) shall be calculated in accordance with the procedure
A typical example:
If the total amount of a real estate mortgage loan is EUR 100 000, with a loan agreement term of 26 years, at a variable annual interest rate of 5.93%, with a one-off agreement administration fee of 0.4% of the loan amount (EUR 400), a minimum daily service fee (EUR 1 per month), a mortgage registration fee (EUR 8.60), and with the mortgage repayments made by annuity, the annual rate of the total cost of the loan 6.25%, and the total amount payable by the borrower would be EUR 198 689.03 The total number of repayments is 312 and the repayment amount is EUR 634.53.
The annual percentage rate of charge, the total amount payable by the borrower, the total number of loan payments and the amount of each instalment are calculated under the assumption that the credit agreement will be valid for a period equal to the duration of the credit agreement, that the entire loan will be paid out on the day that the agreement is signed, that the parties will fulfil all of their obligations properly, and that the variable interest rate, fees and other costs will remain the same as at the time of conclusion of the credit agreement and will continue to apply until the end of the credit agreement. A customer shall also bear the costs of property insurance and appraisal. These costs depend on the individual characteristics of collateral and, therefore, are not included in the total credit price in the example above.
If the loan agreement is concluded in a foreign currency, i.e. if the currency of the customer’s revenues (or the major share thereof) and/or the customer’s state of residence, which is an EU member state or a member state of the European Economic Area, from the currency of the loan issued in euros, the change of the foreign currency compared to euro may significantly increase the amount of the issued loan and the associated payments.
The loan must be secured by mortgage of real estate acceptable to the bank, and the mortgaged property must be insured by concluding an insurance agreement. A report by an independent property appraiser may be required on the value of the collateral. The costs of property insurance and appraisal depend on individual characteristics of collateral, and shall be prescribed by agreements you may have with the relevant service providers.
By using these financing services, you are assuming financial obligations. Improper fulfilment or non-fulfilment of financial obligations may have a negative impact on your credit history and make borrowing more expensive; you also risk losing ownership rights to the mortgaged real estate.
Besides, a loan administration fee may be charged at the time of entry into a credit agreement. Loan administration fees and other fees are provided here.
