AstroBank freezes Base Rate on performing Housing Loans

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Press Release

June 8 2023

 AstroBank freezes Base Rate on performing Housing Loans

AstroBank is rewarding borrowers with no arrears on their mortgage payments, by freezing the ECB and Euribor base rates.

Specifically, the programme concerns housing loans for primary residence whose value does not exceed €350,000 and which are either linked to the European Central  Bank (ECB) Base Rate  or the Euribor Base Rate . The programme will run between 01/06/2023 until 31/12/2023 and shall provide for a fixed interest rate of 2.75% on the aforementioned category of loans. The programme will apply to both current facilities and those disbursed throughout the programme’s duration.

Borrowers can join the programme provided their loan is performing fully throughout the programme’s duration. It is clarified that borrowers who will settle any arrears on their mortgage payments with AstroBank by 30/06/2023 will also be eligible to join the programme. In order to remain under the new interest rate policy, the housing loan must not show any arrears throughout the duration of the programme.

Eligible borrowers will automatically enter the programme without any action required on their part and they may request  more information about their new reduced interest rate as well as the amount of their loan instalments , through AstroBank branches.

At the end of the programme and/or in the event that a loan is in arrears and/or becomes non - performing  during its duration, it will continue to bear accrued interest according to the applicable base rate in force at the time  (as such  may be varied from time to time) plus the bank’s margin which will remain unaffected by the terms of the programme.

AstrοBank recognises the difficulties its customers are facing due to inflation which has led the ECB to announce successive interest rate hikes over the past months, affecting their monthly payments on mortgage loans linked to either the ECB or the Euribor Base Rates. In this context and in response to the calls of the Minister of Finance, the Bank deems crucial to support its vulnerable customers during this difficult time. The Bank will also absorb any further interest rate hikes during the programme’s duration.

 

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