Bank of Valletta is offering an innovative home loan product in which the customer is only asked to repay interest during the term of the loan.

Interest only BOV home loans complement BOV’s comprehensive range of products in this area and offer its customers the opportunity to take out a loan to purchase/complete a property and repay the original amount at the end of a maximum term of six years. The loan has to be settled by age 65.

The way this BOV home loan works is that when the term of the loan ends, the original amount will be repaid either from the sale of alternative property, from the maturity of investments or from any other source acceptable to the bank.

If it is indicated that the loan will be repaid from the sale of property, this must not be the customer’s residence, it must be vacant and must be already owned by the customer at the time of submitting the application. Besides, the property being financed cannot be the eventual source of repayment of the loan capital.

The customer may opt for either a variable or a fixed rate when taking out an interest only BOV home loan.

To be eligible to apply, customers should have a gross annual income of at least Lm25,000 or a net unencumbered surplus of at least Lm200,000.