![The new S recommendation is now in force. It’s harder and more expensive to get a mortgage now? [25.07.2021]](https://d-art.ppstatic.pl/kadry/k/r/1/69/77/60f93b746fd52_o_original.jpg "The new S recommendation is now in force. It’s harder and more expensive to get a mortgage now? [25.07.2021]")
You’ll get less. Taking into account the loan taken for this period at an interest rate of, for example, 3 percent. and income allowing for a monthly repayment of approx. 2 thousand. PLN, the borrower can receive up to nearly 50 thousand. PLN less than before the changes, when a longer loan period was involved. However, incurring such a commitment will be safer, because customers will be able to take advantage of the offer of banks, which already have loans with a guarantee of maintaining a constant interest rate for at least the first five years.
June 30, 2021 is an important date for everyone who plans to borrow a dream apartment or house. According to the new version of Recommendation S, i.e. the document issued by the Polish Financial Supervision Authority regarding good practices in the management of mortgage-secured credit exposures, banks had to introduce new rules for granting housing loans by that date.
It’s harder to get a mortgage since July? So what should the future borrower know about the “new” Recommendation S
It will be safer for customers to make such a commitment, because they will be able to take advantage of the offer of banks that already have loans with a guarantee of maintaining a constant interest rate for at least the first 5 years. There is also less positive news. Changes in the method of calculating creditworthiness mean that in practice it will be more difficult to obtain a housing loan. How much? What else do you need to know about Recommendation S before going to the bank for a loan? These questions are answered by experts from the Union of Financial Intermediary Companies (ZFPF).
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Will the fixed interest rate be really fixed?
One of the most important changes for future borrowers, brought by the new form of Recommendation S, is the fact that banks had to introduce mortgage loans with a fixed or periodically fixed interest rate, i.e. one that cannot change at least 5 years after taking out obligations. This provision guarantees the borrower that the amount of the repayment installments will not change with the increase in interest rates. It is a change that will surely encourage all those for whom the greatest fear when taking out a housing loan was the uncertainty about the increase in interest rates.
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WORTH COMMANDS. Click and read!
– Currently, the interest rate on mortgage loans is still record low, and the changes brought about by Recommendation S allow the future borrower to benefit from this situation, even if the mortgage interest rate were to suddenly increase. However, it is worth carefully following the conditions of the offers available on the market. We can read from them that the periodically fixed interest rate is usually higher than the variable interest rate – comments Marta Zygmunt-Bilińska, Gold Finance, ZFPF expert.
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