Poland’s mBank began offering new variable-rate mortgages based on compounded one-month POLSTR on 7 October. It simultaneously withdrew WIBOR-linked housing loans from its range for new retail business. The change applies to new lending rather than existing mortgage contracts.
The move forms part of Poland’s transition to POLSTR as its new reference rate. Parkiet reported that mBank was among the first lenders to implement the change in retail mortgages. The bank had introduced POLSTR-based products for corporate customers in September.
NEW LOANS USE POLSTR
Interest on mBank’s new variable-rate mortgages combines the compounded POLSTR one-month rate with the bank’s margin. Customers can also choose mortgages with a periodically fixed interest rate.
Applications submitted before 7 October will be considered under the previous rules, according to Parkiet. The application process itself remains available through mBank’s mobile channel and its branches.
EXISTING CONTRACTS STAY UNCHANGED
Existing borrowers with WIBOR-linked mortgages do not need to take action at this stage. WIBOR can continue to be used in current contracts, and the benchmark reform does not automatically replace it for those customers.
Future offers to move existing borrowers to POLSTR will depend on the final form of Poland’s legislation and each customer’s decision. The next milestones are the remaining banks’ retail roll-outs and the final rules governing any proposed changes to existing agreements.