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

“Interest-only BOV home loans complement our comprehensive range of products in this area and offer our 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,” said Denis Busuttil, Head of BOV’s Home Loans Office. The loan has to be settled by the age of 65 years.

“The way this BOV home loan works is that at the end of the term of the loan, the original amount will be repaid either from sale of alternative property, from the maturity of investments or from any other source acceptable to the bank,” explained Mr. Busuttil. “If it is indicated that the loan will be repaid from the sale of property, this must not be customer’s residence, must be vacant and must be already owned by customer at the time of submitting the application. Besides, the property being financed cannot be the eventual source of repayment of the loan capital,” said Mr Busuttil.

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.

Mr Busuttil said that the interest-only BOV Home Loan continues to add on to the versatility of BOV’s range of products which includes euro and Malta lira denominated loans, fixed and variable interest options and repayment periods of up to 40 years. “Our comprehensive home loan product range enables us to effectively provide a long-term solution that is tailored to our customers’ particular needs.

Our relationship officers at all BOV branches are well-placed to discuss each customer’s individual requirements and to indicate the financing options that are best-suited to each particular case.

This apart from the straightforward and efficient service that we offer with home loan sanctioning decisions being communicated to the customer within one working day of having all the required information available,” concluded Mr. Busuttil.

For full details about the interest-only BOV Home Loan, customers may enquire at any Bank of Valletta branch or call the BOV Customer Service Centre on 2131-2020.