The current legislation allows financial and credit organizations to give the borrower the opportunity to repay loans earlier than the deadline established by the contract. And mortgage as well. The state-backed bank VTB 24 also offers its clients a program of early repayment of mortgage loans.
There are only three options
According to the rules of the Banking Law, a partial repayment is making a payment that is more than the required monthly, but less than the entire amount of the debt. Full repayment is a one-time payment of the remaining debt. If part of the body of the mortgage loan is repaid, then bank managers may suggest the following:
- shorten the lending period without reducing the amount of payments;
- reduce the amount of the monthly installment and leave the term of the loan agreement unchanged;
- pay the remaining amount (principal and accrued interest) in full.
The choice of an acceptable option is the prerogative of the client. Partial early repayment of a mortgage at VTB 24 is formalized by an additional agreement, which is drawn up in several copies and signed by the client and the bank's representative.
Advantages and possible disadvantages
The main goal of early loan repayment is to reduce bank overpayment, which is very significant with long-term lending. There are other reasons as well. For example, the need to draw up a new loan agreement in the presence of an unfavorable agreement concluded in foreign currency.
The advantages of early repayment of a mortgage at VTB 24 seem to be obvious:
- the borrower will remove the encumbrance from the real estate pledged to the bank earlier than planned;
- the costs of future payments are reduced (subject to at least partial repayment of the principal debt).
But there are also disadvantages. Experts call the convenience of long-term lending important for the borrower - the participation of inflation in reducing the amount of debt to the bank. That is, it is necessary to calculate the benefits of early repayment of the loan (with low interest rates), especially if a new loan agreement is planned.
Conditions
Since 2011, all financial and credit organizations, and VTB 24 are no exception, have canceled the collection of commissions and other restrictions on the premature repayment of mortgages. The proposed rules do not only apply to military mortgages. The borrower has the right to deposit the agreed amount only if:
- availability of a certain amount on the card linked to the agreement;
- positive balance of other card accounts opened in any of VTB 24 branches and related to the mortgage agreement;
- other accounts on plastic, drawn up at the branch that issued the loan.
Independent actions to repay the debt ahead of schedule by the bank are prohibited. The credit institution must be notified in advance of the additionally deposited amounts. And besides, it is necessary to apply for early repayment of the mortgage at VTB 24.
And even on the phone
It is even possible to remote early repayment of a mortgage at VTB 24. To do this, you need to call one of the bank's support numbers (they are on the official website). Managers by phone accept an application, for registration of which they require information about the payer, the concluded agreement and the date of repayment, as well as passport data. Further events develop according to the scenarios described below. It is better to put the money into the account a day or two before the call.
