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The number of real estate units entirely financed by loans is growing
The mortgage market saw a considerable increase in loans denominated in leva in September 2007.
The share of loans drawn in leva is 46 per cent of the total credit amount for September, mediapool.bg said.
CreditCenter said that the loan takers expect the Bulgarian lev will depreciate and their loans will decrease in value.
Experts argue that borrowers will have to repay their loans when Bulgaria becomes a member of the euro zone. This will make the loans more expensive because banks will charge additional fees for recalculating the amounts.
September saw a slight withdrawal of clients as well, which could be attributed to the increased interest rates. However, forecasts maintain that this trend will not last long because bank promotions have already emerged on the mortgage market and will last until the end of the year.
The number of loans over 100 000 leva granted to Bulgarians has also grown to 16.46 per cent of the total amount of credits issued in September, CreditCenter statistics showed. The increase in property prices accounts for the increase in the average amount of loans.
The number of small companies seeking credits to develop their businesses is also on the rise and stimulates the banks to direct their efforts to small- and medium-sized businesses. Banks have recently started to accept company fixed assets as collateral.
October 17 2007, source: www.propertywisebulgaria.com
The share of loans drawn in leva is 46 per cent of the total credit amount for September, mediapool.bg said.
CreditCenter said that the loan takers expect the Bulgarian lev will depreciate and their loans will decrease in value.
Experts argue that borrowers will have to repay their loans when Bulgaria becomes a member of the euro zone. This will make the loans more expensive because banks will charge additional fees for recalculating the amounts.
September saw a slight withdrawal of clients as well, which could be attributed to the increased interest rates. However, forecasts maintain that this trend will not last long because bank promotions have already emerged on the mortgage market and will last until the end of the year.
The number of loans over 100 000 leva granted to Bulgarians has also grown to 16.46 per cent of the total amount of credits issued in September, CreditCenter statistics showed. The increase in property prices accounts for the increase in the average amount of loans.
The number of small companies seeking credits to develop their businesses is also on the rise and stimulates the banks to direct their efforts to small- and medium-sized businesses. Banks have recently started to accept company fixed assets as collateral.
October 17 2007, source: www.propertywisebulgaria.com
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