MORTGAGE - this is a limited real estate law that provides a guarantee to the bank in a situation where the borrower does not pay back the loan taken out. We process a mortgage from the moment it is registered in the Land and Mortgage Register and assume the end of the loan repayment date.

LTV - it is an indicator that determines the relationship between the amount of the loan and the value of the collateral (real estate). The higher the LTV, the lower the own contribution required by the bank.

EQUAL PAYMENTS (ANNUITY) - a type of payments whose amount is constant throughout the loan period. Payments consist of principal and interest portions - with equal payments at the beginning of the repayment period, the principal portion is lower, while the interest portion is higher, while at the end of the period, it is the opposite, i.e. the principal portion is higher and the interest portion is lower.

CALENDAR SAMPLES - a type of payment where the amount at the beginning of the loan period is higher and, over time, the debt repayment becomes lower and lower. In this type of payments, the amount of interest depends on the amount of principal remaining to be paid - at the very beginning, the principal is the largest, but over time it decreases, so the interest decreases. As a result, the final loan installment includes almost only the principal portion.

BRIDGE INSURANCE - this insurance occurs with mortgages and is a kind of additional cost that the borrower incurs until the mortgage is registered in the land and mortgage register. Bridging insurance is a guarantee for the bank in the face of the increased risk it has taken.

CREDIT PROMISE - this is a document from the bank stating that the customer applying for a loan has creditworthiness and, after fulfilling the conditions set for him, will receive a loan with the above parameters.

CREDIT CAPACITY - this is the possibility for the borrower to repay the debt contracted in accordance with the instalment due date and the amount specified in the schedule.

OWNERSHIP - these are the financial resources that a person applying for a mortgage must have. At present, the own contribution should be at least 20% of the value of the purchased property, however, banks allow the possibility of an own contribution of 10% - in this case, they require an insurance of a small own contribution as a guarantee.

BANK MARGIN - colloquially speaking, this is the bank's profit resulting from the granting of the loan. The margin has a percentage value and is one of the components of the interest rate on the loan. In short, the lower the margin, the lower the interest rate and therefore the lower the payment. The bank's margin is determined individually and depends, for example, on the amount of its own contribution, the customer's profile, the purpose of the loan or the borrower's financial situation.

BANK COMMISSION - this is the value that the bank charges for banking activities.

CREDIT PERIOD - is the time counted from the time of disbursement of the loan funds until the liabilities are fully repaid. The term of the loan depends on a number of factors, including the type of loan, age of the borrower, source of income, etc.

APRC INTEREST - this is a value expressed as a percentage of the total amount of the loan borne by the consumer on an annual basis.

MORTGAGE LOAN INTEREST RATE - the interest rate on the loan is reflected in the amount of the loan payments and the interest the borrower will pay over the life of the loan. In other words, the interest rate on the loan is the cost at which the bank "lends" money to the customer. The interest rate consists of a margin and a reference rate.

CREDIT HISTORY - this is a collection of all data regarding closed and active liabilities. The credit history includes information such as the dates on which the liabilities were disbursed, the amount of the installments, the outstanding balances, the number of borrowers and how the loan is managed, i.e. whether the installments are paid on time.

MORTGAGE LOAN REFINANCING - this instrument can be addressed to people who have already taken out a mortgage and are in the process of repaying it. Refinancing consists of replacing the current obligation with a loan on more favourable terms. In other words, it involves transferring the current loan to another bank that offers more attractive solutions (most often, it is simply a lower payment or a shortening of the loan term).

WIBOR - this is the interest rate at which banks grant loans to other banks. WIBOR is determined every working day at 11:00 a.m.

PRELIMINARY CONTRACT / CONDITIONAL CONTRACT - this is a type of contract in which one or both parties undertake to conclude the so-called final agreement. The most important provisions of the final contract must be specified in the pre-contract.

HOUSEHOLD MAINTENANCE COST - this is a value that plays a very important role in assessing the creditworthiness of the customer. It is the cost of maintaining a household that reduces the customer's net monthly income. It includes expenses for food, fees, a car, etc. The banks themselves determine internally the minimum household maintenance costs, taking into account the size of the household, its geographical location and the number of people in a given household. If the customer reports these costs at a lower amount, the bank will increase them up to the ceiling set by the bank.

MORTGAGE LOAN OVERPAYMENT - the customer has the right to repay a portion of the mortgage at any time. In the case of a mortgage overpayment, the total cost of the loan is reduced by the interest that has been shortened. If part of the mortgage loan is repaid within 36 months of the date of conclusion of the mortgage loan agreement, the bank may charge a prepayment fee.

LOAN / REAL ESTATE INSURANCE - this is a compulsory insurance when a mortgage loan contract is concluded. It is insurance against damage to the property on which the bank has taken out a mortgage. It can therefore be said that this insurance is a guarantee for the bank. The client can use both the insurance offer provided by the bank and can take out an external policy.

LOSS OF WORK INSURANCE - this is an optional insurance and its use when concluding a mortgage contract may result in a reduction of the bank's margin or commission. Unemployment insurance protects the customer against loss of liquidity.