The number of Estia mortgage scheme applications submitted yesterday was smaller compared to Monday’s when it was officially launched, according to insiders.
In fact, only about 15 applications were submitted yesterday – four before the Bank of Cyprus, less than 10 before Kedipes (asset management entity) and a one-digit number before Hellenic Bank.
However, banks and Kedipes are not concerned over the low number of applications, an insider also said, since they believe that borrowers wait for further details on the scheme’s provisions before they take the next step.
Afterall, phone calls from borrowers seeking more information on the scheme were reportedly non-stop. And a very large number of borrowers went to the banks to get a briefing.
At the same time, 700 applications from Bank of Cyprus clients are almost ready for submission, while 145 borrowers yesterday visited Kedipes offices to get an application. Many others dropped in to get informed.
Banks and Kedipes send completed applications to the Ministry of Labour which is the project manager. The Ministry has the final say as to whether an applicant is eligible for participation in the Estia scheme.
The deadline for the submission of applications is November 15, and the state’s first payments should be made between December this year and April 2020.
The state will annually pay 1/3 of a borrower’s restructured loan installment, provided commitments are met.
It applies to loans (mortgages) that were classed as non-performing at 30th September 2017. Loans designated as non-performing after that date are not eligible.
The primary residence which is mortgaged must have a maximum market value of up to €350,000. The Estia scheme applies to the first mortgage on a residence, and covers loans or credit facilities regardless of currency.