Consumer credit jumped at the expense of mortgage

Activity in our credit markets in August, maintaining close to that in the previous July, as part of the customer chose to doplatyat their chosen property with custom rather than a mortgage loan. The reasons for this choice are many users report them to significantly higher interest rates. First is the ability to possess the cash regardless of the time of signing the contract and the willingness or the characteristics of the property, ie, you have complete freedom of choice of housing. This motive is to guide buyers have already selected a mortgaged property with a very attractive price and a good deal for those who know how to deal with the problem. Another group chose to make public sales – they also need cash, and everyone is to achieve the lowest price of the deal, as negotiations on the price of property, term of payment and availability of resources affect the decision to retreat to the seller. Among other reasons for this seemingly unreasonable economic choice in terms of higher interest rates are much tighter deadlines for the grant and the smaller set of documents that require funding institution. Moreover, if necessary, and have stable income, credit and can withdraw two or more members of the household.

All this led to a significant increase in the average size of the extended consumer credit. It reached 11 369 leva with an average size for the first half of 8 462 EUR largest consumer credit pulled for purchasing a home in August, with a rate of 15 000 for 10 years. This, of course, except for specific and proven loyal customer. In general, customers in London search around 10 000 euros for a period of ten years.

Persistently high interest on consumer loans with harsh conditions to obtain and low property prices brought down the average amount of mortgage loans in the country to record levels of 28 567 euros. European currency remains the preferred 88% of people, while the Bulgarian Lev was elected by only 12%.

In August of housing market activity is maintained. Demand the lowest price continue to require cash in hand. Although the level of growth study was carried out and data KreditTsentar requests for loans have increased by 8 percent compared to July.
Representatives of all age groups are back on the market, which is a sign of relief and optimism in the ranks of the youngest. The main group of consumers are still in the middle of the table who have enough savings for down payment and the future clearly enough to obtain the additional financing.
An increasingly clear trend seems to be drawing on smaller loans for shorter periods. This is due first to ever-lower prices for housing, the other a big lump sum, which customers returned to the Bank on a long-term loan. Expensive over the years was again a significant factor and is leading in making a decision to be part of market participants.
KreditTsentar expectations with the onset of autumn the activity of phase queries to continue to grow. At the end of the calendar year and will most likely increase the number of attractive offers for mortgage loans by financial institutions. This is a sign of greater market confidence and alleviate the conditions and improvement of other parameters of the loans will be intrigued by some consumers and bring them back to the real estate market and home loans.

Finance