Financial Services, Latvia, Loan, Real Estate
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Saturday, 27.04.2024, 03:07
Amount of new mortgage loans in Latvia increases by 11.5% in 2015
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The total amount of new mortgage loans issued last year was EUR 321.2 million, up from EUR 288.2 million in 2014.
The number of new mortgage loans last year was 8,541, but only 106 of these loans, or 1.2%, were nonrecourse loans, said Bicevskis.
He explained that the state guarantee program for young families with children was far more important, as 21% or 1,272 mortgage loans were issued under this program last year.
Latvian banks' total loan portfolio is EUR 14.68 billion at the moment.
According to Bicevskis, economic development, growing salaries, low interest rates and adequate property prices all contribute to mortgage lending.
On the other hand, factors that impede mortgage lending include low economic activity and low solvency in the regions, not very predictable legal environment in Latvia, tighter regulations on banks, and restrictions imposed by state support programs, said Bicevskis.
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