Interest-only initial period for home loans introduced by Bank of Valletta
Bank of Valletta is now offering customers taking out a new home loan the option to pay only the interest element up to the first five years of their loan. This new added feature to BOV’s Home Loans suite allows new homeowners more flexibility and cash in hand to finish and set up the home of their dreams.
This feature is completely optional and is available in yearly multiples of between 1 to 5 years according to the customer’s preference. During the interest-only period, the homeowner will benefit from lower repayments to use the income to finish the home, rebuild savings that were spent on the home acquisition, and deferring higher repayments for the future, when income might be expected to be higher due to raises, promotions or a higher paying job.
Traditionally the loan repayment includes two components: interest and capital/principal. The interest-only option allows customers to pay off only the interest part resuting in lower repayments up to the first five years. Holders of BOV Interest-Only Home loans can also choose to opt out of the interest-only period at any time.
‘As Malta’s largest Financial Institution, it is natural that we continue to look at ways through which we can support customers seeking to purchase their primary residence, or a secondary investment or buy-to-let property,’ said Kenneth Farrugia, Chief Retail Banking Officer at Bank of Valletta. ‘Both the interest-only feature, and the term of the interest-only period, will be optional and according to the customers’ choice to allow for more flexibility, in line with Bank of Valletta’s commitment to be a market leader in the Home Loans sector.’
Customers who wish to take up a new BOV Home Loan and benefit from this feature are urged to set an appointment at one of Bank of Valletta’s branches by filling in the form https://www.bov.com/Assistants/set-an-appointment or by calling the Bank’s customer service centre on +356 21312020.
All other terms and conditions of the respective existing products will remain in force.