Purchase of independent mortgage rights

Commercial banks have the opportunity to acquire funds by selling independent mortgage liens to a mortgage bank. In the framework of such cooperation, UniCredit Jelzálogbank offers HUF and foreign currency refinancing for residential purposes as well as for financing commercial properties to its business partners.
The refinancing cooperation come into existence as follows:

• The commercial bank grants a mortgage loan,
• Commercial banks establishes an independent mortgage right on the property that serves as collateral on the mortgage loan according to Article 269 of the Hungarian Civil Code.
• UniCredit Jelzálogbank – with the repurchase liability of the commercial bank – purchases the independent mortgage right offered by the commercial bank. These rights must meet the relevant legal requirements.

State subsidized loan constructions are available in Hungary in two ways. The so-called liability side interest rate subsidy is available if the loan disbursed is funded by a mortgage bank through issuing mortgage bonds. Interest-rate subsidized refinancing is fundamentally influenced by the amendments of the system of interest rate subsidies by the government. Hence, UniCredit Jelzálogbank has to exploit its business opportunities within the existing framework.