Mortgage debtors change their banks
In Europe or USA mortgage debtors change their banks once the difference in rates makes up at least 0.5%. For the last 5 months credit rates in Russia have fallen by 5%. In 1990s 18% credit rate was ok; today the average rate is 11%. Some banks offer loaning up, which is switching from the initial interest rate to the lower one. Sometimes borrowers don’t have to worry about changing conditions, but usually they do. Firstly, one can try to reduce the interest rate within one’s own bank. If it doesn’t agree, one can then turn to those banks which do offer the according products within their range of services.
However, before taking these actions, you have to get rid of your debt – mortgage your flat. It is already the object of your contract with the first bank. In case you have additional immovable property, you can use it for advanced repayment of your debt. After that you can turn to another bank and get a lower interest rate. In case you don’t have any other real estate, banks can take your car or expensive jewelers as a mortgage. You can also try to obtain several non-purpose loans from different banks and thus fulfill your first credit obligations. However, any non-purpose credits are more expensive than mortgage loans.