Nordea Bank is introducing a new form of payment on the mortgage - covered by an irrevocable letter of credit

From mid-April Nordea Bank offers its customers a new form of payment on the mortgage - covered by an irrevocable letter of credit. Covered by an irrevocable letter of credit - a form of cashless payments for the mortgage transaction where the borrower's bank credit facilities put in a special account and remit to the seller only after providing them with instruments of transfer of ownership of real estate to the borrower. During the credit borrower does not have access to funds in the account. If the documents are about the transition of ownership is not granted before the expiry of the credit, the money sent back to the borrower's account. This form of settlement may be an alternative to using a cell with special conditions of access, for example, in cases where one of the parties to the transaction is a legal entity. The main condition for the calculations is the presence of members mortgage transaction accounts of Nordea Bank. The term of the credit - fixed term of state registration of real estate, increased by 2 (two) months. Opening commission in Nordea Bank is fixed and is 2,000 rubles. Receiving and checking documents as well as L / C payment free of charge. "We expect that the introduction of coated the irrevocable letter of credit have a positive impact on increasing the volume of mortgage lending in the Bank, especially in areas where quite often the sellers are the property of the legal person" - says Deputy Chairman Andrei Maltsev.