Mortgage rates in Bulgaria ease in July 2012.

By bne IntelliNews August 28, 2012
Mortgage rates for EUR-denominated loans fell to pre-crisis levels in July as banks continued easing lending terms in an effort to attract more clients and boost lending activity. The average rate for new mortgage loans fell to 7.46% in July, which is the lowest level since April 2008. Since the outbreak of the crisis, banks responded to rising uncertainties and falling financing through tightening lending terms thus reducing access to credit. Some of the results of these measures were stagnating lending, shrinking loan portfolios and deteriorating profits of banks. The government has already called banks to alleviate lending terms in order to give impetus to consumption and economic growth. Although there is a clear prevailing downward trend in rates on newly-issued mortgage loans, this is not as evident for consumer loans in EUR. They seem to have stabilised at around 9.5%, which is lower than the 2008-2009 levels but still considerably higher that 7-8% in 2007. When compared to end-2011, the tendency is for falling interest rates in all categories of BGN and EUR loans except for corporate loans extended in EUR.

Mortgage rates in Bulgaria ease in July 2012.

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