Revolut challenges banks. Here is their mortgage!
Revolut enters the mortgage market. At the beginning, the service will go to customers in Lithuania, with an APRC of 3.9%.
As previously announced, Revolut Bank started operating on the mortgage market. The new service was launched in pilot form and went to the first market – Lithuania. It is addressed to people who want to transfer (refinance) their current credit liability. The whole process is carried out digitally – using the Revolut mobile application.
Loans in the application
Customers can subscribe to the list of those interested in refinancing a housing loan directly in the application. The bank offers pre -approved, personalized proposals based on creditworthiness assessment. As Revolut points out, they are not binding and may change after verifying the security or financial situation of the borrower.
Application users can check the terms of the offer in a few minutes. The loan amount is in the range of 35 thousand. up to EUR 1 million, and the repayment period can reach 30 years. Transferring the loan to Revolut does not involve additional fees, although the previous bank may charge a commission in accordance with the terms of the contract.
Valuation costs
In addition, Revolut covers the costs of real estate valuation and notary services. Each client applying for refinancing receives the support of a local mortgage manager, which can help in submitting the application if necessary.
A representative example presented by Revolut shows that for a mortgage in the amount of 100,000. euro taken for 27 years, the annual variable interest rate is 3.82% (1.49% + 6-month Euribor). The actual annual interest rate (APRC) is 3.9%in this case. This is much less than the average interest rate on housing loans in Poland, which currently reaches about 7-8%.
