Insider Economy MPs call for Estia scheme relaxations

MPs call for Estia scheme relaxations

Days only before the deadline for Estia mortgage scheme’s submission of applications expires and House Finance Committee members are calling for relaxations.

Specifically, they want borrowers who marginally exceed the government-subsidized scheme’s income criteria or the value of their primary residence is slightly higher than the provided one not to be excluded.

The primary residence which is mortgaged must have a maximum market value of up to €350,000. At the same time, income criteria range from €20,000 to €60,000 depending on the family composition.

The state will annually pay 1/3 of a borrower’s restructured loan instalment, provided commitments are met.

It applies to loans (mortgages) that were classed as non-performing at 30th September 2017, and the deadline for the submission of applications is next Friday. So far, the number of submitted applications is extremely low.

MPs called on commercial banks and other financial institutions participating in the scheme to be more relaxed with potential participants who are on the margins of the set criteria.

Yesterday, a Labour Ministry representative told the parliamentary committee during a debate that if a bank judges that an application is in the ‘grey area’ then this should be referred to the special committee reviewing Estia applications.

He also said that there are cases of borrowers whose home value is €1 million and they are applying for participation in the Estia scheme so as to suspend foreclosure procedures.

Committee members called on all parties involved to solve the issue of ‘grey area’ applications by Monday.

 

Read more:

https://in-cyprus.com/estia-schemes-set-goal-highly-unlikely-to-be-reached/

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