Postponement of loan payments provides options for parents of young children


The LHV home loan is made more flexible by the possibility to take a grace period of up to 12 months, if you wish, to plan your life more freely. Now, parents of a child up to three years old can also count on the possibility of an additional postponement in making payments on the home loan principal.

Catlin Vatsel, Head of the LHV private financing department, stresses that LHV has been emphasising the importance of flexibility in providing the home loan from day one. ‘We recognise that people have various needs and their choices in life can be different. Our home loan comes with the option of a grace period of up to 12 months, which can be used for various life events. For example, we encourage parents of young children to consider postponing payments as an option, since an addition to the family means temporarily higher expenditures. In addition to buying children’s supplies, the need to replace your car or repair your home may arise, or you may need to pay for paid childcare. In this case, it is good to know that it is possible to temporarily pause home loan payments to manage your finances,’ Vatsel added.

LHV home loan clients can ask for up to a year-long grace period for various reasons, such as furnishing a new home, studies or a longer trip, when it makes more sense to use the money to cover other expenses. However, according to Catlin Vatsel, clients have thus far not extensively taken a grace period for reasons other than to prevent payment difficulties.

A grace period gives home loan clients the opportunity to postpone the payment of the loan principal, while interest payments must still continue to be made during the grace period. It should be borne in mind that at the end of the grace period, the monthly repayments on the loan will increase somewhat, as the amount unpaid during the grace period is divided between the remaining payments.

LHV home loan clients can apply for a grace period by submitting an application in the internet bank.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. LHV employs over 590 people. LHV’s banking services are used by 282,000 clients, the pension funds managed by LHV have 174,000 active clients, and LHV Kindlustus protects a total of 129,000 clients. LHV’s UK branch offers banking infrastructure to 150 international financial services companies, via which LHV’s payment services reach clients around the world.

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