Banks, Financial Services, Lithuania, Loan, Real Estate

According to Jurate Gumuliauskiene, Director of Private Customer Financing Department at Swedbank, last year the average housing loan increased due to growing economy, improving peoples' expectations and a slight increase of real estate prices.

In 2014 Swedbank signed by 11% more housing loan agreements compared to 2013, whereas the total housing loan portfolio stood at over EUR 1.68 billion.

The number of people who took out loans to buy a house increased from 18% in 2013 to 22% in 2014. However, most borrowers (59%) applied for loans to buy flats. In addition, 5% borrowed to build a house, 4% to finish building a house, while 2% to purchase land plots.

The number of early housing loan repayments has also increased. In the first half of 2014 early repayments accounted for EUR 31 million, by EUR 3 million more year-on-year. Growing early repayments, according to Swedbank, is also an indicator of the improving financial situation in Lithuania.

Last year, similarly as in 2013, Lithuanian residents on average borrowed 74% of the cost of housing. They devoted 28% of the monthly income to repay the loan.

The average borrowers for housing are 35-year-old city residents, who have families, higher education and whose income exceeds the average income in Lithuania.

75% of housing loan agreements were signed in the five largest cities of Lithuania. Of those, 34% in Vilnius, 16% in Klaipeda, 13% in Kaunas, 7% in Siauliai and 5% in Panevezys.