Current legislation allows financial and credit organizations to give the borrower the opportunity to repay loans earlier than the contractual deadline. And mortgages as well. A bank with state support of VTB 24 also offers its customers a program for early repayment of a mortgage loan.
There are only three options
According to the rules of Banking Law, partial repayment is the payment of a payment greater than the required monthly amount, but less than the total amount of the debt. Full repayment is a one-time payment of the remaining debt.
If part of the mortgage loan body is repaid, then bank managers can offer the following:
- reduce the lending period, without reducing the amount of payments;
- reduce the amount of the monthly installment and leave the term of the loan agreement unchanged;
- pay the remaining amount (principal and accrued interest) in full.
The choice of an acceptable option is the prerogative of the client.
Partial early repayment of a mortgage in VTB 24 is made out by an additional agreement, which is drawn up in several copies and signed by the client and representative of the bank.
Benefits and Possible Cons
The main goal of premature loan repayment is to reduce bank overpayment, which is very significant with long-term lending. There are other reasons. For example, the need to draw up a new loan agreement if there is an unfavorable agreement concluded in foreign currency.
The benefits of early repayment of mortgages at VTB 24 seem to be obvious:
- the borrower will remove the burden from the property pledged to the bank earlier than the intended term;
- reduced expenses on future payments (subject to at least partial repayment of the main debt).
But there are also disadvantages. Experts call the convenience of long-term lending important for the borrower - the participation of inflation in reducing the amount of debt to the bank. That is, it is necessary to calculate the benefits of early repayment of the loan (with low interest), especially if a new loan agreement is planned.
Conditions
Since 2011, all financial and credit organizations, and VTB 24 is no exception, canceled the collection of fees and other restrictions on premature repayment of mortgages. The proposed rules do not apply only to military mortgages. The borrower has the right to deposit the agreed amount only if:
- the presence on the card tied to the contract of a certain amount;
- positive balance of other card accounts opened in any of VTB 24 branches and related to the mortgage agreement;
- other plastic bills issued at the branch that issued the loan.
Independent actions to repay the debt ahead of schedule by the bank are prohibited. The credit institution must be notified in advance of the additional amounts due. And besides, it is necessary to apply for early repayment of mortgages at VTB 24. Customer reviews are positive: the bank always makes concessions.
And even by phone
It is even possible to remotely early repay the mortgage at VTB 24. To do this, you need to call one of the bank’s support service numbers (they are on the official website). Phone managers accept an application, for registration of which they require information about the payer, the concluded agreement and the repayment date, as well as passport data. Further events develop according to the scenarios described below. It is better to put money in the account a day or two before the call.
A spoon of tar
Full early repayment of a mortgage in VTB 24, as, in fact, partial, by the above method (by phone) became possible only this year. The bank's board has decided that all those wishing to repay the loan prematurely can contact the hotline. Over the past six months, bank customers have "appreciated" this service. The level of financial, as well as legal, literacy of the population is below average, the qualifications of the operators receiving calls are also not always appropriate. Plus, the low bandwidth of telephone equipment and the seemingly smart algorithm of early repayment of mortgages turn the service into a terrible nightmare.
Fortunate people complain that it is almost impossible to get through. There is also a problem with documentary evidence of the debt amount (either the manager incorrectly calculated, the debtor did not hear well, etc.). In the telephone mode, the process of filing an application for early repayment of VTB 24 mortgages was not thought out: the method of signing is not clear.
As a result: constant delays, mismatch of payment schedules and endless complaints. Most customers are sure that this is beneficial for the bank: interest continues to accrue on time ...
Payment transactions
Transferring money for early repayment of a mortgage at VTB 24 is only possible until 19:00 on business days. This condition is spelled out in each mortgage agreement. There are several payment options:
- using online banking on a card tied to a loan;
- through a cash desk in one of the bank branches;
- in the terminal VTB 24;
- transfer from another bank;
- through the "Post of Russia";
- by terminating the deposit opened at VTB 24 and transferring funds from it to an account tied to a mortgage loan.
Also, in this financial-credit organization it is possible to repay a mortgage using maternity capital funds or a subsidy issued under any of the state support programs.
In case of using maternity capital, it is necessary to apply to the Pension Fund of the Russian Federation with the following package of documents:
- statement of disposal of maternity capital funds;
- certificate of capital;
- certificate holder passport;
- loan agreement;
- ownership of housing purchased for a mortgage loan;
- extract-account from the house book;
- the obligation to register housing for all family members without exception after removing the burden (including minor children).
There are no fees or other penalties for early repayment of a loan. The amount of the deposit is regulated by the client.
If repayment is partial
The bank prescribes the terms of the payment period in the contract. A statement of intent to pay part of the debt should be consistent with the payment period. Therefore, the application can be submitted:
- one day (working) before the start of the payment period, in this case, repayment will be allowed during this period;
- 30 calendar days before the start of the period - in this case, repayment is possible outside the payment period.
If at the time of repayment of the mortgage there is a debt both on the loan body and on accrued interest, then the debt is repaid first.
In case of partial early repayment of the mortgage, VTB 24 asks to take into account some features of payments. Something like:
- funds will be debited in accordance with the monthly payment schedule;
- The amount of the contribution is regulated solely by the borrower.
These rules also apply to mortgage agreements concluded before 2011. There is one more condition: the minimum amount of early repayment of a mortgage in VTB 24 is 15,000 rubles.
Partial repayment of a housing loan requires renewal of the payment schedule and, if necessary, monthly installments.
If full repayment
In this case, the client is obliged to warn the financial institution on a mandatory basis. But repayment is possible on any day, since it does not depend on the payment period.
This repayment option involves filing an application under the following rules:
- one business day of the bank before the repayment day (if it will be in the payment period);
- up to 18 hours on the maturity day (if it is outside the payment period).
These terms are specified in the termination application, and the bank requires their strict observance. If up to the indicated moment the agreed amount is not deposited into the bank accounts, the application-cancellation is canceled. Therefore, it will have to be submitted again, and the early repayment of the VTB 24 mortgage will also be re-calculated.
We calculate the exact amount
Even before filing an application for the premature repayment of a mortgage, you must contact the bank to recalculate the remaining amount of the debt: both its main part and interest. Overpayment or underpayment of at least one ruble will entail a lot of unnecessary paperwork.
VTB Bank provides its customers with a program for self-calculation of remaining debt. The operation can be carried out using the banking system or apply personally to any bank office (in this case, the manager will issue an official certificate with the amount of the outstanding balance). And also the calculation is possible on the official website of the VTB 24 group of companies in your account using a special mortgage calculator. He is also on the bank portal. The calculator is downloaded in Excel format. Using it, according to customers, is quite simple.
Final closing of the contract
Repayment of the full amount of debt is not a termination of the contract with the bank. In this case, the mortgage is recognized as closed incorrectly, therefore, information on the completion of obligations cannot be reflected in the credit history. To avoid these errors, do the following:
- sign a mutual agreement with the bank on the termination of the contract on the basis of the submitted application of the borrower;
- write an application for the cancellation of a plastic card tied to the account of the mortgage agreement (the bank manager is obliged to cut the card on the protective magnetic tape in the presence of the client);
- submit a written application with a request to close the loan account through which payments were made.
And only after these procedures the bank issues a written assurance of the absence of debt and any claims.
Features of the repayment of military mortgages
Military mortgage is implemented through the state funded mortgage system (NIS). Its participant, having repaid the housing loan, will receive a certain amount at the Federal State Institution "Rosvoenipoteka", which will grow.
The early repayment of military mortgages at VTB 24 enables the serviceman to relinquish his credit obligations and, if necessary, to resign from the service earlier than the expected term. Here it must be recalled that if you leave for the reserve of your own free will before the expiration of the twenty-year service life with a valid mortgage, the civilian will have to pay the entire declared value of the purchased housing. That is, to return to the state (NIS) all monthly contributions, in fact, like the original.
At the next stages, the conditions for early repayment of a mortgage loan from VTB 24 for the military are no different from the conditions for such loans for civilians.
Post scriptum
Current legislation requires insurance of a mortgage borrower. These payments are laid down in the total amount calculated for monthly payment. Therefore, in case of early repayment of the loan, you must contact the insurance company and ask for reimbursement of the unused, but already paid amount.
Also, having received documents on the full payment of the mortgage, you can take them to the Cadastral Chamber to remove the burden from the purchased housing.