OREANDA-NEWS. April 04, 2011. The Bank of Moscow has announced introduction of a new "Combined Rate" Mortgage Loan. The loan is being extended within the scope of a pilot project in Bank of Moscow offices in the Moscow Region and the Bank’s branches in St. Petersburg, Krasnoyarsk and Novosibirsk.

The new Bank of Moscow mortgage programme is distinguished by lower nominal interest rates and the borrowers being given a choice of method for accruing the loan interest: a fixed interest rate for the first 1-5 years, to be reviewed later depending on the Mosprime, LiborUSD or LiborEUR shadow rates, of an interest rate tracking the Mosprime, LiborUSD or LiborEUR shadow rates right from the start. The mortgage rate is reviewed every 6 months or once a quarter, as the borrower wishes.

"The new loan programme supplements the standard mortgage programme, thus expanding the opportunities for the Bank’s potential borrowers, and is intended for purchase of homes in the secondary market", commented Stanislav Stanek, Head of Retail Business of the Bank of Moscow. "We are convinced that introduction of a mortgage programme with a so-called "floating rate" will make our offers in the mortgage sphere more competitive."

The Bank of Moscow is an innovator in the Russian mortgage market. In 2007-2008, for instance, the Bank was the first in the Russian market to update its mortgage programmes by conducting a marketing campaign involving elimination of the initial mortgage deposit and offering mortgages in Swiss francs and Japanese yen.