Bank Mortgage Loans

Klydesdale Bank

A handling charge, evaluation and securities charges will apply. All other assets that are used as collateral, which may even your home belong to, are at stake if you breach the deal, and may be resold to pay off your debts. Your company can be given space to expand by relocating to larger facilities or extending your existing one.

In order to make everything more accessible, we can offer a payback period of up to 20 years. Jump to footnote[1] - and even incorporate a 5 year payback vacation. Jump to footnote[2] to increase your bottom line money up. Gain quick and easy control over your money when it's authorized and secured.

mortgages

Our goal is to offer a product that meets your needs. Committed and seasoned bilingual executives are available to talk to you in person or on the telephone to help you better understanding, discussing and meeting your needs. To help you better understanding how our solutions and solutions work.

Our aim is to provide you with clear information about our range of goods and our service and to help you understand the main characteristics, charges and associated risk.

Everything is changing for the Polish bank sector

Poland's bank sector is characterised by a number of changes in regulation, both at home and in the EU. In recent years, currency loans have been one of the most discussed issues in Poland's economical and politicosphere. Based on information provided by the Financial Supervisory Authority of Poland (PFSA) in July 2017, around 40 per cent of the PLN 396 billion (around EUR 94 billion) in mortgage loans to consumers provided by Poland's financial institutions are expressed in euros (mainly CHF).

In the mid-2000s, immediately after Poland's accession to the European Union, there was an increase in mortgages in local currencies due to significantly lower interest rate levels. The Polish Financial Supervisory Authority has since limited the provision of new loans (since 2013 Recommand S has only allowed bank loans to individuals in the client's own denomination in the country in which the client earns most of its income).

Whilst both the present and former government have openly expressed their readiness to enact laws that would reduce some of the burden of foreign exchange loans (even propose a violent transformation of currency loans into zlotys ), the only law adopted to date is the law to support borrower in difficult financial situations who have taken out a housing loan (the "Act 2015").

However, the effects of the 2015 Act are rather modest as it only supports those borrower who are jobless (with some exceptions), have a very low level of incomes or where the cost of the loans exceeds 60 per cent of their households' incomes. In addition, the period of support in the shape of repayments of instalments not exceeding PLN 1,500 (approximately 350) per annum by the state bank Gospodarstva Krajowego may not extend beyond 18 years.

The changes in the regulator's accounting policy had no impact on current loans. Meanwhile, the value of the CHF against the PLN has increased significantly (while the value of CHF 1 is currently approximately 3.6 PLN), while the value of CHF-denominated loans was approximately 2.00 PLN during the prime period of the CHF-denominated loans, coupled with a depreciation of part of the property underlying the mortgage loans, and has led to significant difficulties for some borrower whose instalments are almost twice as high as at the date of the credit contract.

Simultaneously, several major banking institutions have received substantial portfolio holdings of potentially non-performing intangibles. Reviewees to the 2015 Act say it does not solve the underlying problems associated with foreign exchange lending portfolio but instead concentrates on relieving short-term debt burden on those whose finances have quickly worsened. To tackle the wider issuance of foreign exchange loans, MEPs tabled a number of suggestions.

But the only draft legislation that currently seems to have a reasonable prospect of adoption was presented at the beginning of the year by President Andrzej Duda of Poland (the "Draft Law"). If a foreign exchange loans were voluntarily converted into a PLN bond, the amount of the fund would compensate for the gap between the carrying amount of the foreign exchange loans before conversion and the amount of the PLN bond converted.

Specifically, the rules enabling the restructuration fund to recover the "loss" of the creditor through the credit swap could be a satisfying option for both creditors and debtors. CASA is working on a new advice, which would not be formal obligatory for Polish banking institutions, but would strongly force them to voluntarily reorganise foreign exchange loans and allow them to be converted into zloty-denominated loans, which, in combination with the'loss cover' rules, could be a long-term workaround.

Poland's 1997 Act on Pfandbriefe and Mortgage Bodies (the "Pfandbrief Act") recently marked its twentieth year. Up until recently, the Act establishing the legal environment for the operations of specialised mortgage lenders, which are the only ones authorised under domestic legislation to issues Pfandbriefe, was of little use.

The changes initiated in the last two years have, however, stimulated the markets and resulted in the creation of cover d-bond programmes by Poland's financial institutions, such as PKO Bank Hipoteczny S.A., which launched a EUR 4 billion scheme in 2016, and mBank Hipoteczny S.A., which cancelled a EUR 3 billion scheme a year later.

Increasing the capacity of retirement fund to fund Pfandbriefe. In terms of the profitability of an Pfandbrief loan, the exempting of Pfandbrief interest from source taxation since the beginning of 2016 is a particularly welcome move. PKO Bank Hipoteczny S.A. has been a complete winner since its first issuance of Poland Gold Certified Certificates in October 2016 (all outstanding issuances were significantly over-subscribed, the first issuance was 200 per cent oversubscribed).

In view of the very encouraging response, other major operators are examining the feasibility of opening mortgage lenders, such as ING, which already obtained a licence in January 2018, and Bank Zachodni WBK (Santander Group), which is in the throes of acquiring one. As a result of the introduction of further regulation constraints, such as obligatory overcollateralisation and cash buffering as well as new insolvency proceedings, foreign issuers have come to view Pfandbriefe as a secure investment by now.

In the view of the borrowers, raising the refinancing capacity of a mortgage bank (and thus raising its collateral pool) while simultaneously lowering the taxation load has made the products commercially sensible. A number of important participants (including non-Polish banks) are considering opening new mortgage lenders, which is a clear sign that the growth of the mortgage lending sector is expected.

A new law on mortgage loans and oversight of brokers and brokers came into effect in Poland in July 2017. With the Mortgage Act, a number of new provisions were established for banks that grant mortgage loans in order to protect consumer borrower (the law does not apply to loans to companies).

Whilst the Mortgage Loan Act implements Directive 2014/17/EC on consumer loan contracts for housing into national legislation, it also implements several approaches specifically for the domestic housing sector. Firstly, the new Mortgage Loan Act formalises the limitation on the provision of foreign exchange loans which was first implemented in 2013 by the Financial Supervisory Authority of Poland in Recommendation S. The new Mortgage Loan Act also provides for the possibility to grant foreign exchange loans in the form of a foreign exchange loan.

Under the Mortgage Act, a mortgage can only be provided in a single denomination or in a single denomination in which the borrower earns most of his earnings or owns most of his property or other asset. Secondly, the Mortgage Law restricts the possibility to provide mortgage loans to banking entities (including EU lending entities and Poland subsidiaries of non-EU banks) and cooperative societies.

Consequently, non-bank creditors will no longer be able to provide mortgage loans to consumer. In addition, the rules of the Mortgage Loan Act establish a registry of mortgage brokers kept by the PSA and determine the extent of oversight of the commercial activities of mortgage brokers and mortgage agent.

Changes in the domestic financial system are considerable and are proceeding at a rapid rate, but will they be good for the country's economies?