The Mortgage Bank of Uruguay (BHU) had recently chosen to reduce its competition and aggressiveness in the mortgage credit market. Private banking took advantage of this certain lethargy of the main player in the Uruguayan market to launch itself with more force in that banking niche, offering access to mortgage loans with lower rates than the state bank in its different range of products.
At the beginning of the new government administration, the BHU authorities had managed that given the budget restrictions the bank was going to reduce its advertising and also the expansion of its mortgage portfolio. In recent weeks, the Santander bank announced a new mortgage product with a rate of 3.9% in indexed units (UI); Previously, Itaú bank had also gone on the market with a reduction in the rate of its mortgage loans to 3.9% in UI for up to 10 years and 4.5% for longer terms. Now the BHU seems to be within range of the rest of the market.
“In order to adapt interest rates to the needs of its clients, the Banco Hipotecario del Uruguay (BHU) adapted its rate, going from 5% interest to 3.75% for those public employees or salaried employees who request 10-year loans for half the value of the property to be acquired, regardless of whether or not they are savers of the financial institution,” the BHU reported in a press release.
This implies that any public or private worker can apply for a mortgage loan with that rate to purchase homes in all parts of the country, including rural areas, reported the BHU.
On the other hand, the state bank indicated that the criterion of applying a variable rate based on the operation is maintained, which implies taking into account the profile of each client, the characteristics of the loan and the percentage of the home purchased that is financed.
In addition to being the only local bank that lends up to 100% of the cost of the property with the presentation of a second guarantee, the BHU does not charge a commission for the credit granted, offers the possibility of making partial repayments after 2 years of requesting the loanand “charges a very low life insurance through a recent agreement with the State Insurance Bank (BSE)”.
“Since its return to the mortgage loan market, which occurred in December 2008, the BHU has achieved leadership through proper management, which has allowed it to consolidate its loan portfolio with efficiency and productivity, generating the financial solidity that allows us to offer the population a more convenient proposal by adjusting interest rates,” the statement said.
Those interested in BHU loans can access the simulator to define the proposal that suits their needs at this link https://www.bhu.com.uy/
