Mortgage lending up 33% to UAH 2 billion in December

In December, Ukrainian banks issued 952 mortgage loans for a total amount of almost UAH 2 billion, which is 33% more than in November (UAH 1.5 billion).

This is evidenced by the data of the monthly Survey of Banks on Mortgage Lending, Ukrainian News Agency reports.

The results of the survey:

- 539 loans for UAH 1.1 billion were provided in the primary real estate market, of which 203 for UAH 385 million were provided under the collateral of property rights to future real estate;

- 413 loans for UAH 827 million were provided in the secondary real estate market;

- the weighted average effective rate was 8.11% per annum in the primary market and 8.66% in the secondary market;

- the quality of the mortgage portfolio is good: the share of non-performing loans is only 13%.

In terms of regions, the largest number of mortgage loans in December were issued:

- in the Kyiv Region (347 contracts for a total amount of UAH 722 million, or 37% of the total);

- in the city of Kyiv (191 contracts for UAH 455 million);

- in the Lviv Region (47 contracts for UAH 103 million);

- in the Odesa Region (40 contracts for UAH 78 million);

- in the Volyn Region (38 contracts for UAH 69 million).

During the survey, 38 banks with a share of over 95% of the total gross mortgage portfolio responded, of which 14 banks reported issuing new mortgage loans.

As Ukrainian News Agency earlier reported, the Financial Stability Council approved the Strategy for the Development of Mortgage Lending, aimed at developing market mechanisms in this market segment in order to increase housing affordability.