Middle February Russia will raise mortgage bank-rates and make requirements more rigid
25 January 2008Agency on mortgage housing crediting takes measures on strengthening of the mortgage market in Russia against the background of world mortgage crisis. This agency belongs to the state fully, from creation on the basis of the government’s decision up to a full share holding.
The initial installment will be increased from 10 up to 20 percent, and new requirements will be informed to the potential borrowers of desirable housing credits after middle of February. These actions are directly connected to the experience of the European countries, when big risks have entailed financial losses.
Commercial banks, however, are not going to change their policy concerning percents, that can’t be told about future toughening of requirements. Experts prophesy return of the mortgage market to a former course as soon as the situation becomes stable, but none can tell when it will happen.
- EBRD: Russian mortgage is unreliable and inconvenient
- Savings Bank of Russia will cancel mortgages at delivery of credits
- The role of insurance companies in the hypothec market
- ECB has raised a discount rate up to 4,25 %
