Housing: Barclays Bank Unique Mortgage Plans For Homeowners

In Kenya, the demand for housing is rising due to the ever-growing population. The supply does not match the need, as a result, pushing the prices upwards.

Annually, the country needs 200,000 housing units for all income levels.

However, the World Bank report on housing observes a different scenario where it is “Unavailable and Unaffordable”.

“The production of housing units is currently at less than 50,000 units annually, well below the target number, culminating in a housing deficit of over 2 million units, with nearly 61 percent of urban households living in slums. This deficit continues to rise due to fundamental constraints on both the demand and supply side and is exacerbated by an urbanization rate of 4.4 percent, equivalent to 0.5 million new city dwellers every year,” the report released in April 2017 reads in part.

On the other hand, homeownership is a topic that concerns everyone. Whether one is a tenant or a person who intends to own a home.

This is because initial costs of buying a house remain high.

In terms of affordability, for instance, a recent Cytonn Investments report for the Nairobi Metropolitan Area Mortgage and Rental Affordability Report 2017, mortgages are unaffordable in the Nairobi Metropolitan Area with an Index of 65, with Satellite Towns being the most affordable with an Index of 82, out of a requisite 100. Rents are, however, affordable in the Nairobi Metropolitan Area with an Index of 124, out of a requisite 100.

It is important for anyone to understand the Mortgage Payment Structure.

According to Investopedia, a mortgage is a long-term loan designed to help the borrower purchase a house. In addition to repaying the principal, the borrower is obligated to make interest payments to the lender, and the home and the land around it serve as collateral.

Barclays Bank Kenya is boosting the local mortgages offering Home loan, Construction loan, Equity releases, La Riba Mortgages (Sharia compliant) and Foreign currency Mortgages.

Whether you want to buy, build, getting the most out of your property or buying to let, Barclays has that sorted in unique financing models.

George Laboso, Head of Mortgage Barclays Kenya in a recent Twitter Chat #OwnIt said depending on one’s’ income documents required are: For employed persons, the bank needs a 3 months’ pay slips and bank statements and for self-employed persons, they need one’s audited books of accounts for the last three years.

If buying a home is in your agenda, then you may want to reschedule whatever you have planned for today at 14:00 and join us for our Twitter chat. #OwnIt pic.twitter.com/415Zg4kccH

— Barclays Bank Kenya (@Barclays_Kenya) December 7, 2017

The bank’s current interest rate on a mortgage is currently at 14 percent for Kenyan Shillings. and 7.9 percent of US dollar and the Pound.

Laboso advises those seeking a mortgage to consult first “It is advisable to first consult the bank to determine the loan that you qualify for. Once this is done, you can consult your real estate agent to advise on available properties within your range.”

“It is important to maintain a positive credit score to access any loan facilities. Always ensure your loans and bills are up to date. We also guarantee to inform you within 48 hours if your application was successful and to keep you updated throughout the whole process,” he adds.

However, property registration process takes between 45-60 days.

Whichever mortgage plan one opts to choose, Barclays bank, a system that makes the application process easier and convenient for its customers.