OREANDA-NEWS. August 11, 2011. OJSC Nordea Bank’s mortgage portfolio as of July 01 rose beyond 10 bln. roubles having increased by 48% as compared to the 1st half-year of 2010, reported the press-centre of Nordea Bank.

“Such significant growth in the mortgage portfolio is achieved thanks to the highly competitive products, long-term commitment of the professional team and unprecedented sales rise due to the Bank’s current action “Summer! Stripping off the mortgage!” offering unique opportunities on the domestic market” – says Andrey Maltsev, Deputy Chairman of the Management Board at OJSC Nordea Bank.

Nordea’s action “Summer! Stripping off the mortgage!” effective till August 31, 2011 provides the following benefits:

reduced downpayment for Classic, Special-Purpose and Any-Purpose mortgage loans amounting to 10% of the mortgaged property cost;

margin cancellation of 1 percentage point for customers who confirm their income by providing an income statement in a loose form from the employer;

decrease in the rates by 0.5 percentage points. Interest rates under the programmes with compulsory personal and title insurance, irrespective of the income statement form, range from 8.5% to 14.5% per annum in roubles and from 6% to 12% per annum in US dollars depending on the mortgage programme and fixed rate period;

an additional fixed rate period set for 6 years. Thus, the interest rate can be fixed for 1, 2, 3, 4, 5, 6, 7 and 10 years or for the whole lending period up to 30 years;

margin reduction to the market indices LIBOR 12 months, EURIBOR 12 months for FX loans down to the MosPrime Rate 6 months for loans denominated in roubles. Hence the loan margin upon expiry of the fixed rate period, irrespective of the loan currency and income statement form, will amount to 5 percentage points;

margin cancellation of 1 percentage point for the Construction Share Participation lending programme before the mortgage is effective. Currently the rates envisaged by the programme are similar to the Classic mortgage loan (acquisition of an apartment or a house on the secondary market) ranging from 6% to 10% in foreign currency and from 8.5% to 12.5% in roubles.

Other key benefits of the Bank’s mortgage lending programmes – no prepayment penalties, differentiated (tapering) or annuity (equal) instalments option, commercial real estate and land plots accepted as mortgage, no fees for issue of loan, acceptance of covered irrevocable letters of credit for settlements under mortgage deals and a lot more.