The data from the Credit Information Bureau shows that in June the demand for mortgage loans increased by nearly 26 percent. compared to May. Experts are cautious about these results, they are still weaker than in 2019. However, positive signals are already coming from the market – banks are starting to ease their policies, and the first promotional offers are also appearing.
According to experts, 2020 was to be a record year in terms of the number and value of mortgage loans granted. Low interest rates and a good financial situation of Polish households would favor willing decisions to invest in real estate. However, as with many other industries and areas of life, the situation was complicated by the outbreak of the pandemic.
Loans under the dash since March
The first months of 2020 heralded a very good year for the credit industry. The Credit Information Bureau then informed that the value of mortgage loans granted increased in January by 24.5%, and in February by 27.7% – compared to the same period in 2019. In March, the situation changed dramatically and for the first time in six months, negative values appeared in relation to the demand for loans.
Thaw in banks – is it worth applying for a mortgage?
– In mid-March, we began to notice the first negative effects of the pandemic, but the situation did not deteriorate significantly until April. We were approached mainly by clients who – mainly due to the loss or reduction of their salary – had problems with the timely payment of their liabilities. Our work was therefore mainly about looking for beneficial solutions for them, before there was any real help for borrowers from the government – says Katarzyna Dmowska from ANG Spółdzielnia.
Poles are returning to banks
According to BIK data, in June there were 2.6% more loan applications compared to June 2019, but their value was lower by 6.7%. The most important, however, is the fact that the number of applicants increased by as much as a quarter compared to the previous month, which may indicate a thaw in the credit market. The improvement of the situation is confirmed by reports of the first promotional offers.
Important today! Click and read!
– In recent months, banks have tightened their mortgage loan policy. Increased, among others the required minimum value of own contribution – even up to 30%, also people running their own business had less chance of getting a loan. Currently, we have more clients than there are opportunities to find financing for them that meets their expectations and possibilities. Recently, however, optimistic signals from banks have started to reach us about the easing of these restrictions and about the appearance of promotions for mortgage loans. However, this does not apply to all banks, Therefore, I recommend using the services of a credit intermediary who is kept informed of any changes and promotions in force in most banks. In each case, customers must be patient, because due to limitations in the form of remote work, processing times in banks are significantly extended – adds Katarzyna Dmowska from ANG Spółdzielnia.
Due to the difficult situation of Poles caused by the pandemic, the Monetary Policy Council lowered interest rates down to just 0.1%. According to the regulations, the interest rate on a mortgage loan cannot exceed twice the sum of the interest rate and 3.5%, which means that it does not exceed 7.2% at present. When determining the loan repayment terms, however, it should be remembered that these terms may change at any time, and after increasing the interest rates, the monthly loan installment will increase by up to several hundred PLN.