United Arab Bank (UAB) has confirmed news that it is offering the lowest mortgage rate in the UAE as demand for home financing starts to gather pace after a two year slump. It is learnt that UAB was undercutting its rivals by offering an interest rate of 4.99 percent. This product will be available to salaried and self employed UAE nationals as well as expatriates with conventional and Islamic financing options.
After the global credit crisis, mortgage financing came to a halt and forced the country?s top mortgage providers to stop lending.
Paul Trowbridge, CEO, United Arab Bank, said: “We strongly believe this will bring renewed impetus to the mortgage market and gives our target customers an opportunity to own their own home with the most competitive interest rate in the market.”
UAE central bank governor Sultan bin Nasser Al Suwaidi has urged local lenders to slash interest rates on loans to businesses amid ?abundant? liquidity.
Al Suwaidi said the interest margin for banks was high and asked them to ?consider the condition of borrows, traders and businesspersons.?