Many investment professionals are calling attention to the fact that those who have (and also have) forint foreign currency loans may want to make a change to their contract in the near future.
In its announcement, the MNB draws the attention of (former) mortgage- backed mortgage consumers to the fact that, by voluntarily accepting higher installments, they may be relieved of significant future charges.
An important deadline for repayments will soon be up to date
Affected ‘FX-locked’ customers must begin paying off their accumulated balance after the end of the 60th month following their entry, February 2015, forint conversion, which will result in an increase in installments.
In essence, exchange rate hedging contracts mean that the law on forint foreign currency loans continued to maintain the installment limit, so that the repayment level did not follow the rise of the Swiss franc exchange rate. That is, the amount of the installment installments could not exceed the amount of the installment installment paid at the exchange rate of HUF 180 in January 2015 for 60 months from the beginning of the exchange rate cap.
The repayment difference is recorded by the banks
However, the repayment difference is recorded by the banks. After the exchange rate barrier has expired, the amount of monthly repayment may be increased by the relevant financial institutions by up to 15 per cent. If necessary, the repayment term may be increased until the debtor (or youngest debtor) reaches the age of 75.
The most cost-effective and cost-effective solution
For the affected customers to initiate a contract amendment and to pay a higher installment, if financially feasible, within a 60-month period. This avoids a significant increase in the installment after 60 months and an extension of the term.
Of course, the change only affects former foreign currency borrowers. Today, there are only forint loans, which are much less risky than the former, euro, Swiss franc, yen, etc. based loans.