Standard Chartered is set to introduce a low-interest, low-priced mortgage plan aimed at jump starting the slow moving mortgage market. Current mortgage uptake has been on a period of slow growth.
Through a low-priced Kenya shilling and dollar mortgages initiative, the lender is planning to see customers access up to Sh.100 million at 13 per cent interest rate and six per cent annual interest rate for dollar mortgages.
The Kenya shilling dominated mortgage is a part-fixed rate mortgage package, where customers will enjoy the low-interest rate for the first two years after which the loan will be charged at market rate. The innovative move may spark more interest in the mortgage market.
The lender a lay out of more than Sh.4 billion in mortgages in the next two months, through the scheme.
“We are introducing flexibility based on feedback we receive from customers. This facility allows customers to plan in the long-term,” said David Idoru, head of retail banking. The package includes an extended loan repayment tenure for customers of up to 25 years.
“We want to help our clients realise home ownership dreams,” said Idoru. The deal is expected to shore up more interest in the banks mortgage segment.