Bank Of Bermuda Meets Demand For Fixed Rate Mortgages

by Carla Johnson, Investors Offshore.com

24 January 2005

The Bank of Bermuda has announced the launch of new fixed rate mortgages, which are being introduced in response to customer demand for the products.

From Monday, January 17, the bank began offering 2 and 5 year fixed term rates for its 85% and 95% mortgages, each of which is offered for 10-30 years at rates of 7.75%.

The fixed rate automatically switches to a variable rate after expiration of the 2 to 5 year term.

Michael Collins, Head of Banking Services, revealed that a number of the bank’s customers have been enquiring about fixed rate term rates, and the new loans have been launched as a direct consequence of this demand.

“With global interest rates showing signs of moving upward, albeit slightly, it is not surprising that some of our customers would like to 'lock in' the favourable rates currently being offered here at the Bank,” noted Mr Collins.

According to real estate professionals, property prices in Bermuda recorded one of their strongest gains in 2004, and the ready availability of mortgages now that banks have eased lending restrictions is cited by many as a major reason behind the continued boom.

“The market is hotter than ever,” Susan Thompson, sales manager for Coldwell Banker JW Bermuda Realty, told the Bermuda Sun recently.

“We are continuing to have more people who want to buy property than we have properties for sale,” she added.

Recommended