VTB24 lowered mortgage rates

VTB24 decreased from 20 July rate for the main mortgage programs, told reporters the head of the Bank Mikhail Zadornov. “Underlying mortgage loans in roubles Bank reduces rate by 0.4 percentage points, to the level of 13.6% per annum. In the framework of the state program rate is set at 11.9%”, — he said (quoted by TASS).

From 1 March 2016 to 20 July, the rate on mortgage loans issued in the framework of the program of state support stood at 12% per annum.

Zadornov also noted that in June 2016, VTB24 sold to collection agencies a portfolio of overdue loans totalling RUB 10 billion, bringing the share of overdue loans in the loan portfolio of the Bank decreased to 8.2%.

July 12, the drop rates for the major mortgage programs in average by 0.5 p. p. Sberbank announced. He later lowered by 2 percentage points the rates on consumer loans.

According to the Central Bank of the Russian Federation in may 2016, weighted average rate on rouble mortgage loans % to 12.99% per annum.

Large banks have begun lowering lending rates after lowering the key rate of the Bank of Russia on 10 June to 10.5% per annum. Its decision, the Central Bank then explained by the stabilization of inflation, lower inflation expectations and risks, and prospect of economic recovery.