27.7.2007

Bulgarian property byers take out unprecedented number of mortgage loans

The number of mortgages granted in June 2007 exceed that for December 2009, Credit Center reports. This is a new trend on the market, because typically the last month of the year is the most active. According to Address, the boom resulted from the increase in the number of solvent clients and the greater variety of competitive mortgaging conditions.

The average amount of credits had grown as well, from 31 200 euro in 2006 to 38 600 euro in the first half of this year. The growth of 24 per cent is explained by banks' willingness to require a smaller down payment and the increased property prices. About 40 per cent of all mortgages granted since the beginning of the year cover more than 80 per cent of the property's value. Banks compete aggressively on that score, and now there are some willing to finance 100 per cent of a property's value.

Source: www.propertywisebulgaria.com