The mortgage market has revived. The National Bank of Poland provided the data
The value of loans to households is falling – according to NBP data. This is due to the decreasing value of mortgages, which in turn is the result of Swiss franc mortgages, which have shrunk by as much as 25% in a year. However, there was a revival in PLN mortgages, which is the result of, among others, Safe loan 2 percent
Data from the National Bank of Poland (NBP), quoted by Business Insider Polska, show that the value of household loans at the end of October this year. amounted to PLN 774.6 billion. This is a decrease of 3%. year to year (nearly PLN 24 billion) and by 1.3 percent (PLN 10.5 billion) compared to September.
Revival of PLN mortgages. The effect includes Safe loan 2 percent
As the portal notes, the decline in loans to households results mainly from the decreasing value of mortgages. The value of all mortgages for this group (including PLN and foreign currency mortgages) was at the end of October this year. PLN 474 billion, i.e. 5.6 percent less than a year ago, and compared to September, the decline was almost 2%. This is mainly due to mortgages in foreign currencies, mainly Swiss franc mortgages, which have shrunk by as much as 25% over the year. On a month-to-month basis, there was a decline of 13%.
However, improvement is visible in the case of PLN mortgages. Compared to September, this portfolio increased by 0.6%. (PLN 2.2 billion) to PLN 396 billion. Also by 0.6 percent. however, the value of the portfolio decreased on an annual basis. This was caused by the collapse in new sales in autumn last year and the first months of this year, but also by increased mortgage overpayments.
The revival is the result of the government’s Safe Credit 2% program launched in July, which provides for subsidies to installments. The effects of the program have been visible since September. A slight reduction in interest rates and loosening of requirements by banks (including the so-called interest rate buffer, which was allowed by the Polish Financial Supervision Authority) also helped.
The consumer loan portfolio increased
In turn, the consumer loan portfolio grew by 1.1% year on year. (PLN 2.1 billion), but on a monthly basis it decreased by 0.7%. (PLN 1.5 billion), to PLN 196.4 billion. The portfolio of current loans for entrepreneurs and individual farmers (both groups are classified as households) grew by 4.9% year on year. (PLN 2.3 billion), and on a monthly basis it increased by 3%. (PLN 1.4 billion), to PLN 48.9 billion.
