Slovak banks provided a record-breaking volume of mortgages in June following the previous top level seen in May, the TASR newswire reported citing stats issued by the Slovak central bank (NBS) on Wednesday, August 7.
The volume of mortgages provided in June stood at €425 million, up from €400 million a month earlier. The main reasons for keen interest lie in low interest rates, no charges for the administration of credit accounts and current special offers. Interest rates dropped to 3.97 percent on average in June, below 4 percent for the second time ever after the first such instance in May, TASR learnt from Fincentrum consultancy.
Fincentrum's analyst Ján Porázik said that the low interest rates on mortgages, for their part, are a function of low interest rates on the inter-bank market, competition, and the increased tendency among applicants to negotiate the terms and conditions of mortgages with banks. The phenomenon of clients switching between banks is also exerting an impact on the rates. Further record-breaking figures in terms of mortgage volumes may be seen this autumn, as banks are set to launch new promotions for their housing loans, said Porázik.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
8. Aug 2013 at 15:00