He has raised enormous interest the proposal by Banca Mediolanum unilaterally reduce the interest rate of loans in the portfolio of all its customers an average of 0.64%, with a consequent reduction of the installment. Only the network in the first three days were required 1,300 mortgages. But here are the words on the details of the savings directly by Ennio Doris, president of Banca Mediolanum, Mediolanum during the Freedom Conference, words to clarify every detail:
'For clarity I brought two concrete examples of two real customers, which will call for customer privacy and customer Verdi Rossi.
The client has a green capital of 170,000 Euros and a residual term of the mortgage of 20 years. The percentage funded is 75% of the value of the house. The spread was 1.80% above the original ' Euribor , while the new spread is 0.99%, so there is a reduction of 81 cents. The installment, based on the Euribor 4.85, down from 1,283 euros to 1,202 euros with the new pricing, resulting in a monthly savings of 81 Euro, 972 Euro per year and total for the entire life of the loan, to 19,258 Euros . This saving is definite, is that rates go up is that interest rates fall, because the spread was reduced compared to the reference rate.
The customer Rossi has 198,630 Euros to the remaining capital, a loan term of 28 years and a percentage of 79.50% funded. The original spread was 1.80%, while the new one is 1.09%. In this case its installment falls from 1,304 Euro to 1,214 Euro: 90 Euro monthly savings, 1,080 euros to 30,284 euros in annual savings and total savings, which is also always definitive, is that rates go up is that rates will fall.
Other opportunities cumulative: + Freedom Mortgage Mediolanum measure Tremonti
For these clients, flexibility, there is not only reduced but also the possibility, in case they want to pay less, as suggested by the measure Tremonti, to do so now and then reducing the rate and extending the loan.
What happens if a customer decides to apply the measure Tremonti when it enters into force?
If the customer is present Verdi installment of 1,283 euros, while the rate 'Tremonti' is of 1,111 euros. There is therefore a reduction of 172 euros per month that are set aside in a trust account debt, capitalized and placed in a queue. In this case the mutual will lengthen of 5.3 years, but the rate would be reduced from 1283 to 1202 Euro. Therefore, reducing the rate, the debt is reduced.
Paying 1,111 Euros, the debt that accumulates each month is not 172 Euro but only 91 euros, then the loan is extended less, exactly 2.7 years instead of 5.3. The customer then Green will stop to pay 2 and a half years paying 36,088 euros less.
For the customer, instead of Rossi, the rate drops to 1,085 euros and 1,304 euros per month, then 219 Euro to accumulate debts that are queued. The customer lengthen his mortgage of 13.6 years due to our decision to reduce the rate at 1,214 euros, and since the rate of Tremonti by 1,085 Euro, 129 Euro monthly accantonerebbero at constant rates and the extension would not be more than 13 , 6 years but of 6.8 years, ie half, spending at least 88,298 Euro.
Finally, we will not apply any cost to those who, finding improved market conditions, Banca Mediolanum wanted to leave and we ensure maximum facilitation for this to happen very quickly. Finally, considering that the government Tremonti provides for the elimination of legal fees from January 1 next year, so that there is a period in which the effect of the same customers do not move, we decided to assume the cost of legal fees, compounding our income statement and doing the exact same economic conditions for our customers, just as if there were no legal fees.
I agree with the remarks of Governor Mario Draghi: The country has the desire, ambition, to return resources to grow, he knows that the development has, over time, a prerequisite for financial stability.
We wanted to make our contribution towards the customers, which has been shown to have confidence in us'.
For more information:
https://www.mediolanum.it/ITA/12192_14812.html
Telephone number: 840 709292
Author: Ylenia Battistello, Redoffice
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