The pledge is provided to the creditor prior to the performance of the obligation, and in the event of breach of the legal agreement, he actually owns the pledge. However, if the funds are insufficient, the mortgagor has the legal right to apply to the court to pay the missing portion.
A state notary prohibits the alienation of the collateral, which means that you have no right to dispose of the lien until the debt is repaid, even if you are still the legal owner. During this period, the sale, exchange or other legal actions are considered illegal – such a violation entails criminal liability.
Which bank provides a mortgage loan?
Despite the crisis, you can even buy a home in Ukraine with a mortgage. On the example of this table let us compare the criteria (200 000 USD for 10 years):
There are also general requirements for potential borrowers of all financial institutions:
Passport of the citizen of Ukraine.
- 2. Formal employment.
- 3. Confirmation of income for the last six months.
- 4. Legal documents.
Which bank provides a mortgage loan for an apartment?
Depending on the amount and duration of the loan, as well as the financial condition of the borrower, the terms of the contract differ. The system automatically analyzes reliability, solvency and makes certain decisions. On the basis of what the result is obtained and the decision will be made, the reasons for the refusal are not reported.
The next question that bothers borrowers is: “What is the interest rate on the mortgage loan?” You can compare them across banks. As the loan portfolio has fallen several times since 2014, interest rates are expected to rise in the future. Let’s look at a table from which you can find out which Ukrainian bank offers a loan on the security of an apartment and where it can be purchased without additional costs (100,000 USD for 60 months).
The figures are slightly different, but the first installment is most alarming. In addition, financial institutions will not give more than 50-60% of the estimated value. It turns out, if you want to buy a house worth 500 000 USD, you will receive no more than 250 000 USD.