Another bank confirmed the possibility of granting loans from 10 percent. own contribution also in 2016. After EUSuper Bank, also PL Good Bank announced the maintenance of current rules. After this decision, we can expect that other institutions will also follow in the footsteps of the largest bank, and it will not always be necessary to contribute 15 percent next year. own contribution.
Pursuant to the provisions of Recommendation S of the Polish Financial Supervision Authority, the loan amount cannot be higher than 85%. property values. In practice, this means that it is necessary to contribute 15 percent. own contribution. However, the regulations allow for the possibility of granting a higher loan, provided that additional collateral is established. Recommendation 15.7 states that the allowable LTV (loan-to-value ratio) may be “90% if a portion of the exposure exceeding 85% LtV is properly insured, or the borrower provides additional collateral …”. Collateral on a bank account or a pledge on securities issued by the National Bank of Poland or the State Treasury may be accepted as collateral. It will also be permissible to accept a pledge on the borrower’s funds accumulated on IKE or IKZE. However, it is worth remembering that the final decision on accepted forms of collateral and the possibility of granting a loan of 10 percent. own contribution is made by the bank granting the loan.
PL Good Bank and EUSuper Bank – green light for loans with 10% own contribution
Nearly a month before the date of implementation of the new regulations, PL Good Bank bank announced that in 2016 it will continue to grant loans of up to 90%, i.e. on the terms in force this year. Thus, he joined EUSuper Bank, which a few days earlier also announced the maintenance of current regulations in 2016 in terms of the permissible LTV level. Borrowers, in particular, should, however, enjoy the behavior of the largest Polish bank, because it is an institution that informally sets standards. We have observed many times that it was the behavior of the biggest players that other lenders made their actions addictive to. We can therefore assume that a large proportion of the remaining banks will also require 10 percent in 2016 own contribution, and part of the missing amount will be insured or secured in the form provided for in Recommendations.
LTV unchanged, but margins will increase
People planning to take out a loan next year do not have to accumulate a larger down payment. However, they must count on the expected increase in margins and other fees. The introduction of the so-called “Bank tax” will translate into higher loan costs. The tax will cover the bank’s assets and it is difficult to expect that banks will not at least partly want to charge customers this fee.