Retail mortgage loans continued to decline last year, amounting to HUF 3,511 billion at the end of the year, 17 per cent less than in 2011, and 54 per cent of them were foreign currency-based loans, down 28 per cent, according to the Hungarian Central Statistical Office. .
As of December 31 last year, the total housing loan stock was more than 12 percent of gross domestic product (GDP), according to the HCSO.
Following an increase in the housing loan
Portfolio until 2010, it declined in 2011 and declined significantly in 2012. Following the tightening of subsidized forint loans and the suspension of foreign currency lending, the number of loans granted and disbursed continued to decline.
As a result of the preferential early repayment of foreign currency loans, the total housing loan portfolio continued to shrink, while its composition was restructured: foreign currency loan portfolio decreased significantly, while forint housing loans rose slightly after the forint loan portfolio increased by 2 percent.
63 per cent of the housing loan portfolio was in banks, 30 per cent in mortgage institutions, about 3 per cent in savings and credit unions, and 3 per cent in housing savings funds.
At the end of last year
81 per cent of loans granted were problem-free, with 10 per cent receiving special attention. The ratio of below average, doubtful or poorly rated loans is 9 percent.
The HCSO notes that last year foreign currency lending virtually stopped, reaching less than one-tenth of the amount of loans granted. In 2012, nearly 69,000 home loans were disbursed, amounting to HUF 236 billion, a 2% decrease in the number of loans compared to the previous year and a 10% decrease.
In the second half of 2012, more than 19,000 home loans were granted for a total amount of HUF 62 billion. The number of loans granted decreased by 45 per cent compared to the first half of the year and by 58 per cent.
The average value of loans granted to clients decreased from HUF 3.8 million in 2011 to 3.6 million.
Looking at the purpose of loans
Loan redemption stands out in 2012, rising to HUF 72 billion as a result of the fact that some of the end-repayers replaced their foreign currency loans with forint-based loans. These transactions took place mainly in the first half of 2012. The ratio of loans for construction and purchase of new homes remained unchanged compared to 2011. The purchase of second-hand homes dominated the previous year.
The average maturity of housing loans disbursed last year was 14 years, among the individual loan targets it was around 16 years for housing construction and the purchase of new homes. (MTI)