News
Positive trends in the mortgage market in our country ...
07.12.2009
Positive trends in the mortgage market in our country and continued through November, the average amount spent on mortgages for first time this year more than 40 thousand euros, indicates an analysis of KreditTsentar.
The average amount of loans drawn for the country in November was 40 487 euros and the ratio of euro / euro is 88 to 12 in favor of European currency. In October the average was 36 800 EUR, a year earlier, in November 2008 - almost 38 700 euros.
Inquiries in November rose by 15%, mainly banks attract "quality" borrowers. The company's data showed that about 40 percent of all respondents have the ideal profile for banks:
- Insurance household income above 2000 EUR
- Provided a deductible of more than 40 percent of the value of property acquisitions
- Lack of other loans or leases
- Age 30-35 years
- Permanent employment service with over 2 years
- And last but not least, the choice of a fully completed property in the neighborhood with a good image and build infrastructure.
In November the flexibility shown by the two banks, as suggested products developed "specifically for the crisis, comment from the company. These are loans with fixed interest rate for the initial period of one and two years respectively, as interest rates start from 6.85% for ten-year loans in euro.
At the end of the calendar year the people who buy property on credit should be more careful in defining the terms in their preliminary contracts, the consultants advised. Council of experts is to leave a gap of at least two months, since December is active only during the first half and part of the key institutions are in recess during January, which will extend the time for gathering the necessary documents and issuing the transaction.
The average amount withdrawn in Sofia mortgage loans increased significantly despite the relatively low rate of funding and requiring users to have their savings. This means that the market traded higher and / or better-quality property with a higher total cost. According to brokers, property buyers looking for homes for 40 - 45 thousand euro, which compared to the average size of mortgages means that transactions at the lowest price segment for various reasons, be realized without or with very little external bank financing.
Young Bulgarians aged between 30 and 35 years of service and ten years have not only the most suitable, but also the most active in borrowing. The weakness of the young members have raised funds for a down payment. In a large percentage of cases they receive them from their parents or from the sale of ancestral property.
Despite the growth in average size, the largest share continues to occupy the credits of between 10 and 30 thousand euro. The reason is the reluctance of the majority of clients to take higher than average risk of their options.
The period for which the borrowing declined in recent months. The trend is directly related to improving financial literacy of consumers who seek optimal amount for a reasonable time so as to pay a lower price for the entire period and at the same time be able to afford the monthly installment.
The company's expectations for 2010 are to continue to improve the conditions of the mortgage market. Most likely, interest rates will fall by an average of 1 percentage point, for loans in euro reached 8.5 percent, while those in euros - 7.5 percent, and said last week before Investor.bg Tihomir Toshev, executive director of the company.
Demand at the beginning of the year is expected to be weak, but in the spring market will begin to appear attractive new proposals, so that by the end of 2010 the market will show growth of 15% over 2009
Overall, next year will move under the sign of different markets - the ideal customer profile will be maintained and the banks will significantly liberalize the requirements, but the best customers will get better conditions. At the end of 2010 and expect the first products to refinance, and activity on the part of consumers for renegotiation and refinancing of old mortgages.
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