VTB Bank decided on Monday, February 28, to raise rates by 4 percentage points, now the minimum rate will be 15.3% for both finished and under construction housing. This is stated in the press service of the credit institution.

“From February 28, VTB raises rates on its own mortgage programs by 4 percentage points, the minimum rate will be 15.3% for both finished and under construction housing. The loan decision will be valid for 30 days for new applications. valid until March 5 (inclusive),” the message says.

The bank clarified that they were forced to revise the parameters of mortgage lending in the conditions of the sanctions announced against VTB. At the same time, the credit institution decided not to raise rates on preferential mortgage programs. The rate on mortgages with state support will still be from 5.75%, on the Far Eastern mortgage – 0.1%, on the “family” – from 4.7% (from 4.3% in the Far Eastern Federal District).

Refinancing

Against the background of rising rates in the mortgage market, VTB will also suspend processing applications for refinancing mortgage loans from February 28. “Due to the sharp increase in rates in the market, VTB also decided to temporarily suspend the processing of applications for refinancing mortgage loans,” the report says.

“VTB continues to serve all customers, we are ready to individually address each issue of our borrowers. Bank managers advise them in full. With the support of the government and the Central Bank, we will make every effort to ensure the stable development of the housing construction and mortgage lending market in Russia. We are confident that the measure on the “cooling” of the lending market will be temporary and banks will soon be able to return to more affordable rates,” the press service of the bank emphasized.

Raising rates

Earlier, TASS, citing the rate monitoring data of the Marcs marketing agency, reported that a number of Russian banks over the past few days have raised rates on mortgage programs ranging from 0.75 to 3 percentage points. Among those who decided to raise rates, Rosbank Dom , Absolut Bank, DOM.RF Bank and Alfa-Bank.