The overall variable interest rate consists of the variable interest base and the interest margin set for the client individually.
The interest margin is calculated for each Client on an individual basis.
The interest margin is set upon consideration of the following factors:
- Your credit history;
- The value and liquidity of the property mortgaged;
- The loan term;
- The selected interest base etc.
Bank applies the following interest base options:
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The variable interest base changes every 3/6/12months, consequently, the total interest rate payable may either decrease or increase, depending on the change in the base interest rate.. New loans are available with a 6-month variable interest rate only. When selecting the variable interest rate you have to consider that the fluctuation of the interest rate in certain period can markedly increase your monthly interest payments to the Bank. In order to ensure proper fulfilment of financial obligations, the Bank recommends that you allot no more than 30 to 40% of your income for that purpose.
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When a payment is delayed or there is a substantial breach of the main conditions of the credit agreement, the Bank is entitled to review the interest rate margin unilaterally. The margin will not be changed if you were not repeatedly late or were not late for more than 15 days with your payments to the Bank and/or its companies over the last 2 years, and if you have complied with all essential conditions of the credit agreement.
|Service or operation name
|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.)
|Fee for setting of a grace period
|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
|Fee for granting the approval for remortgage (conditional mortgage) to another creditor5
|Late payment charge for the outstanding part of the principal and for unpaid interest
||0.05 % per each delayed day
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 home loan being taken out related to real estate is EUR 78,000, when the duration of the credit agreement is 26 years with a 2.06 per cent variable annual interest rate, paying a one-off loan agreement administration fee established by the bank of 0.4 per cent of the credit amount (EUR 312), the minimum daily service fee (EUR 0.70 per month), the mortgage registration fee (EUR 8.60) and annuity mortgage payments, then the annual percentage rate of charge would be 2.16 per cent, and the total amount paid to the borrower would be EUR 101,672. The total number of loan payments would be 312, and the amount of each instalment would be EUR 324.
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.