SKB-Bank has recently reduced the interest rates on mortgages provided for those willing to invest in having a dwelling built for them rather than for those buying existing homes. The annual interest rate went down 3%, so the top rate can now only amount to 16%; moreover, if you are able to provide some housing as the loan collateral for the construction period, the interest rate will be reduced to 15% a year.

‘The three-percent difference will definitely make a whole lot of difference to our customers. If you borrow 1.5 to 2 million RUR and have to pay 19% a year, it will be several thousand rubles more expensive for you every month,’ SKB-Bank’s Mortgage Lending Director Anna Samuilova reports.

These interest rates are valid throughout the construction period; as soon as the new dwelling has been registered with the Federal Registration Service, the loan will automatically be classed as a standard mortgage one, which means the interest rate will drop to only 11%, the bank’s press officer says.