Banks don't want to refinance mortgages
Borrowers faced with the reluctance of banks to refinance existing mortgages on more favorable terms: such an application can be considered by the Credit Committee within 2-3 months, but in the end the client is still denied a reduction in the rate. The current boom in Russians' requests for refinancing of current liabilities is related to the reduction of the weighted average rate on housing programs (from 11% to 7.0%) , as a result, its value has reached a record low. At the same time, there are forecasts that the peak of decline has not yet passed and in the future mortgages can be issued even at rates below 7% per annum. And against the background of failures of domestic clients is remarkable another fact: new borrowers banks without problems issue housing loans on new terms at a rate of 7.7% per annum.
According to the official version, refinancing programs are available to all categories of consumers. But judging by the unspoken comments, recently they faced a massive influx of those who ask to reconsider the rate in the payment process, as a result of which it was decided to refuse such applications. As explained by the bankers, for them it is a lost income, because at the time of mortgage issuance they attracted money from the market at higher rates, which was put in the cost of borrowing.
However, if the current client turns to his bank to refinance the home loan from a competitor, his application will be approved. This is done in order not to lose the borrower, as in the banking segment there is an informal rule not to reduce rates to their customers. It is important that citizens do not have any legal leverage to force lenders to refinance existing mortgages on more favorable terms, even if they complain to the Central Bank.
But it is also quite difficult to switch "with a mortgage" to another bank. By law, this can only be done if the current treaty does not prohibit such an opportunity. And banks everywhere include this ban in their contracts.
As noted in the Central Bank, they are already thinking about how to simplify the life of borrowers, so that they can change lenders without restrictions. Moreover, some claims from those who failed to teach the necessary refinancing were found to be justified. As a result, mutually acceptable solutions have been developed that have satisfied all parties to the conflict.