Mortgage lending in March increased by 7% to UAH 1.5 billion

In March, Ukrainian banks issued 808 mortgage loans for a total amount of UAH 1.5 billion, which is 7% more compared to February (UAH 1.4 billion).

This is evidenced by the data of the monthly survey of banks on mortgage lending, Ukrainian News Agency reports.

The main results of the survey:

- 494 loans for the amount of UAH 932 million were provided in the primary real estate market, of which 240 loans for UAH 439 million were provided under the collateral of property rights to future real estate;

- 314 loans for the amount of UAH 573 million were provided in the secondary real estate market;

- the weighted average effective rate was 8.37% per annum in the primary market and 10.48% 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 March was issued:

- in the Kyiv Region (256 contracts for a total of UAH 471 million, or 31% of the total);

- in the city of Kyiv (185 contracts for UAH 402 million);

- in the Lviv Region (43 contracts for UAH 92 million);

- in the Vinnytsia Region (35 contracts for UAH 69 million);

- in the Volyn Region (32 contracts for UAH 57 million).

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

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