Mortgages: will escape from a floating rate?

The crisis has hit all the participants of the mortgage market. But most of all seems to be under attack were the borrowers, the interest for which were calculated on a "floating" rates. Currency LIBOR index and the ruble "colleague" MosPrime, formerly a model of moderation and good humor, last year, suddenly "unlinked" and demonstrate the behavior is quite in the spirit of the Saltykov-Shchedrin, "I had a friend of the landlord, who benefactor farmers benefactor ... And then vzgrustnet and go - all in the snout to snout yes. " Is there an antidote to the "floating" adversity - this issue clarified reports online magazine about the property Metrinfo. On why LIBOR is better Mosprime On the types of mortgage rates Metrinfo magazine not long ago wrote ("Mortgages: swollen to the interest rate"), so that it is, as we are literally in the nutshell. Rates are fixed (there is interest rate recorded in the credit agreement) and "floating". The latter consist of the "base" (the one per cent, under which the bank receives the money itself) and "bank margin" - that the bank earns on the borrower. For foreign currency loans in the world adopted "base" is the index of LIBOR (London Interbank Offered Rate - the London Interbank Offered Rate) - almost the average interest rate at which banks in the world market provide loans to each other. For the ruble - an index MosPrime Rate, which is calculated in Moscow. In normal times, when the economy is doing well, "floating" rate fixed below. Banks can afford it - their interest rate is "insured": the moment when the market situation will worsen and the price of credit resources will grow, grow, and mentioned in the previous paragraph, stock indices. If we look to the "bump of" borrowers, in normal times the interest on a "floating" loans, as discussed below, and it is a strong temptation to take just such a loan. But in a crisis, "Consider the specific numbers - says Artis Veyps, director of the" Fund loans. " - For example, in March 2007 was taken as a loan at a rate of MosPrime plus 5%. In that month, the index was at the level of 5,50-5,60 - hence, the borrower pays the bank for about 10.5%. By August 2007, even rate tended to decrease - up to 4,70-4,80. Our borrower happy - he interest decreased to less than 10% - and this is in rubles! But by March 2008 had risen to the level of Mosprime 7,10-7,20, and in November there was a very sharp increase - up to 24-25. And our borrower pays 30% per annum - more than three times higher than the best of times! In fact, it is the road to bankruptcy. " With LIBOR'om are present in principle, the same "trably" - in the western markets crisis, too, the interest changes. But the scale ... The London index in the last decade, remained in the corridor of 1.5-5%, even in the last year they jumped out of those boundaries. "Horrible growth," from which the West all clutching at his heart - is 1-2 percentage points. We would have their problems, "LIBOR rate of such jumps as MosPrime, did not show" - said Artyom Kostyushin, head of mortgage lending company "SBS-Mortgage." We can add that this is the reason that absolutely all posts on mortgage borrowers who have fallen into a difficult situation due to the growth of stock indices relate to people who took the ruble-denominated loans. Our people, which over the past two decades, except that no baited Dostum, the growth rates of 1-2% not catch. Help or will finish? Borrower, who got into "a trap" "floating" rate of the ruble, of course, it would be better to move to a fixed percentage. But how would react to such a request the banks? Or try otfutbolit will meet? The opinions of experts we interviewed on this subject are divided. In the camp of the optimists - Viktor Afonin, Director of Marketing, "FOSBORN HOME." In his opinion, banks are interested in the fact that the client has continued to regularly pay on the loan and, therefore, will negotiate with the borrower. A more careful look at the problem Olga Guseva, head of marketing group of companies "Domostroitel." "If you approach the problem comprehensively and not just ask the bank to fix the rate, but also to optimize their own expenses, show it - she says. - Seeing you in a serious borrower, who may have temporarily faced with difficulties, banks are going to meet you. " "Until recently, the transition from the" floating "rate of return on the fixed and was resolved - like Marina Galaktionov, director of partnership development company" LOAN MAX. " - There are bank program under which the client first pays a fixed rate, and then (and this was stated in the credit agreement) must go to "float" (eg, "OTP Bank"). The "Swedbank", by contrast, was a program, which provides "floating" rate for 25 years. But if the customer is not satisfied, he transferred to the fixed ". Now, the expert continues, banks are offering, or fixed or "floating" rate for the entire term of the loan. The exception is "OTP Bank", where preserved, "hybrid" scheme. Other banks in the loan agreement on the possibility of a transition do not say anything. "If a customer writes a statement, the question will consider on an individual basis and will answer: you can or can not" - said Marina Galaktionov. Similar view - that this is an individual matter - is shared by Artis Veyps (the "Fund Credit"). "They will look for a compromise banks or not - depends on the subjective conditions of their work" - he says. And finally, the most pessimistic was Artem Kostyushin ("SBS-Mortgage"). "I would say that you can not go and try to go" - he said. And reminds us that history with the bank "DeltaCredit" when borrowers were transferred to a flat rate, it was only after quite a lengthy proceedings. How much is the transition? Theoretically, go easy: you should write to the bank statement outlining its request and the reasons that lead you to treat her. Then all, as already mentioned, depends not so much from you, how many of the bank's policy. However, even a positive response means that the borrower face new expenses. "Unfortunately, I do not see in a dream, that the banking industry did something for free, - said Artyom Kostyushin (" SBS-Mortgage "). - In any case, the various fees and will take a few percent of the outstanding debt. " "The move is likely to pay, - concurs Viktor Afonin (" FOSBORN HOME "). - The amount of payment depends on several parameters and can vary from a few thousand (if the transition is made within the same bank) to a few tens of thousands (if a transition occurs between different banks.) How to pay the bankers will discuss with the client on an individual basis. " Estimating the coming spending, the borrower must be clearly understood: in terms of the bank, any refinancing - is issuing a new loan. Received money to you how to extinguish the old debt and a new starting pay for new conditions. Accordingly, to estimate future costs are not that hard: you just look at the conditions under which the bank issues new loans today. 20 or even more percent in rubles - that is, of course, a lot. But on the other hand, we saw that the interest rate, based on Mosprime can reach today, and 30% per annum. Back to the benefit of such credit on any terms. "Credit to 5 million rubles, taken in January 2008 for 15 years at 11.5% in rubles, the payer would be treated to 58 400 rubles. per month - illustrates this thesis Viktor Afonin ("FOSBORN HOME"). - The same amount of credit, but on a "floating" rate MosPrime (6.19%) would get along in 2008 about 42 700 rubles. However, in 2009, this payment would amount to 95 300 rubles.. " Summary: The question of "whether or not to move with" floating "interest rates on fixed?" Is not as simple as it seems. On the one hand, 30% per annum, resulting in "mercy" MosPrime - is, of course, terrible. On the other - obviously the banks' podsuetilis "and levied a record wishing all sorts of interest rate levies and commissions, which often" eat "all benefit from this event. Adds complexity and the fact that the generally accepted rules for the market does not exist: each credit institution solves the problem in its own way, and even taking into account the individual circumstances of each individual borrower's credit history. "There is no practice - no calculation" - described the situation as one of our consultants. The output is obtained by one - to ask for switching to a fixed rate, you can: demand for, as you know, do not hit in the nose. And just received from the bank a detailed response that will be told how and under what conditions it can be done, it should make the final decision - to accept or continue to pay as usual.