Mortgage lending is back to its pre-crisis levels. As regards the bulk of the offers, the interest rates, the percentage of funding of monolithic and panel building construction and the accompanying charges and commissions also increased and reached their levels of mid 2008, according to the April analysis of the CreditCenter consulting company. The company specified that in addition to the optimistic indicators, over 10% growth in the new extended mortgage loans had been registered. Moreover, clients are increasingly choosing insurance products to protect the granted funding.
The average amount of mortgage loans, borrowed in Bulgaria, also increased to nearly €37,000, reported CreditCenter. Let us remind our readers that as early as November, the company registered a decrease in some mortgage interest rates to their levels of 2008.
The cost of the bank credit also returned to its pre-crisis values. According to an analysis of MyMoney online financial guide, in April, financial institutions primarily focused on the adjustments on fixed-term deposits, which followed again the downward trend of decrease. A similar passive trend was also observed in terms of the loan indicators, reporting a rise in the residential loans and almost no adjustments in consumer lending rates. The positive trend for an increasingly smooth improvement of the terms and conditions continued also in April, which was mainly limited to the continuation of some promotions and reductions of interests.
The company's data indicates that in April the most active borrowers were those between 26 and 35 years of age since they constituted 48.5% of all mortgage loan borrowers over the past month. The youngest people, comprising a 12.1% share of all credit borrowers, also showed favourable activity. Statistics indicated an increase in the proportion of mortgage loans of higher rates of over €50,000, whereas a decrease in the share of small-amount loans was also registered. The upward trend in the share of loans, covering 80%- 90% of the cost of the dwelling, continued to be observed in April, stated also the experts. Every fifth mortgage loan, withdrawn during the last month, was aimed at covering over 80% of the home price. The most frequently granted credits were mainly targeted at the covering of 70-80% of the amount of the transactions.
Internet source: klassa.bg
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