New settings for borrowers who had taken Step – up programs to serve the mortgage Banks are preparing them, in discussions with the Bank of Greece and SSM. Banks are reportedly planning to offer these borrowers the opportunity to turn their loan into interest -bearing. The conversion will be at a fixed low interest rate of 3% – 3.5%, so that for the rest of their loan loan borrowers pay a fixed installment.
Supervisory authorities are closely monitoring the evolution of Step – up programs on mortgages that banks had given to borrowers during the Capital Controls and the pandemic crisis, when many companies put staff in suspension, resulting in a sharp decline in income. It is noted that Step – up on loans are regulations where the repayment installment is gradually increasing over time, taking into account a possible future income increase or a reduction in borrower expenses, with SSM playing a supervisory role in the relevant procedures.
At the discretion of the supervisory authorities lies the behavior of these arrangements, as the loans they have received see the installments due to now have increased significantly, with the possibility of ending up in non -performing. Banks want to prevent this to prevent them from moving preventively, making new arrangements for over 50,000 borrowers with regulated 3 billion mortgages. euro, who had entered step – up programs. SSM’s decision to allow this or rank existing programs that appear to have a smooth service problem on non -performing loans is expected on July 31.
The “Step – Up” arrangements on mortgages were given from 2016 – 2017, providing borrowers the flexibility of lower payments that would increase in the process. In this way, borrowers had the flexibility to adjust their loans to their financial capabilities and not to become ultimate. Banks had set up these programs to facilitate borrowers, as the crisis had reduced their disposable income by 25%, bringing consistent borrowers to a failure to serve their loans. Step up programs (12 to 18 months) were also available during the Pandemic crisis, with strict control by banks to exclude strategic badgers.