In its endeavour to launch products that meet the needs of particular customers, HSBC Bank Malta has taken another innovative step and has now introduced the “Interest Only Home Loan” – a new type of home loan for the Maltese property market. The innovative distinguishing feature of this new product is that the customer will only have to settle the interest element throughout the term of the loan with the capital being settled in full at the end of the term of the loan.

The Interest Only Home Loan is intended for a specific customer segment that requires short-term finance to purchase or complete homes, which could be either main or second properties, until income from a definite source materialises. These could be proceeds from an inheritance, maturing investments and sale of property among others.

Customers having a gross annual income of at least Lm25,000 or net free assets of Lm100,000 can borrow up to Lm250,000, over a maximum loan term of five years. Loan will have to be repaid by age 65.

The bank will finance up to 70 per cent of the property. The mortgage will be reviewed every two years and customers may be requested to switch to a capital and interest repayment if a shortfall is evident. Specifications and interest rate as per normal Home Loans will apply.

HSBC intends to remain Malta’s bank of first choice for Home Loans, promising a fast, efficient and friendly service at competitive rates across the widest range of Home Loan products in Malta.

Further details on HSBC Home Loans and the HSBC Interest Only Loan are available from the website www.hsbc.com.mt, by calling Customer Service on 2380 2380 or from any branch in Malta and Gozo.