Besides being one of the largest Bulgarian banks, Bulbank, owned by the Italian banking giant UniCredit Group, has also had in the past few years one of the most innovative approaches towards mortgage lending.

Bulbank now offers the lowest interest rate of 5.88 per cent for the first year on mortgage loans. The promotional offer is to remain in force until the end of the year.

The bank has promised to grant an answer to any mortgage application within 48 hours and if needed, to provide the client with a mortgage certificate.

Bulbank was the first to introduce to the market the “Mortgage Certificate”, issued to any customer after a single discussion with them. The certificate has a one-month validity and shows the maximum amount of the credit that can be extended to the client.

This gives an idea to the customer of the size and the price of the property they can afford to buy after borrowing the amount. 

Bulbank has implemented a flexible interest rate policy comprising five different interest plans. The bank provides 5.88 per cent interest rate for the first year, while the interest for the remaining period is calculated as the sum of the base interest rate of Bulbank and an addition of 5.55 per cent.

Customers may also benefit from the bank’s promotional programme for longer periods - three, five, 10 or 25 years. For the three-year plan the interest is 6.48 per cent, for the five-year plan 6.78 per cent, and the 10-year period  7.18 per cent.

After the expiry of the promotional periods the rate is formed as bank base interest plus addition of 5.55 per cent.

Customers may also embrace the offer of a fixed interest rate for the maximum maturity on Bulbank’s mortgage loans - 7.78 per cent for a 25-year period.

Bulbank also provide an option for a maximum six-month grace period on interest payments. This make it easier for customers for the period following the cost they incur for the loan disbursement and the purchase of the lodging.

The bank offers seasonable repayment of the loans with corrected instalments. The scheme is valid irrespective of whether the loans are payable upon annuities or decreasing instalments. This way, customers pay less during the winter time, when all communal payments grow heavier.

In the event that the client has signed an annuities-repayment contract, during the winter time (from November till April) the client is to pay only 80 per cent of the instalment payable on a non-corrected instalment plan. In the summer months (from May till October) 120 per cent of the non-corrected instalment is to be redeemed.

On loans with decreasing instalments during the winter period, customers pay 50 per cent of the non-corrected instalment and during the summer 150 per cent.

As part of its flexible mortgage strategy, Bulbank has several types of loans in addition to the standard mortgage credit. Loans are provided for purchase and for construction of real estate, for investing in a property together with a developer, for repair or overhaul of existing housing, purchase of new property while another loan is still being repaid, as well as funding the customer for buying a new home while still selling an old one.