Mortgage lending rises by 13% in April to UAH 1.7 billion

In April, Ukrainian banks issued 910 mortgage loans totaling UAH 1.7 billion, which is 13% more than in March (UAH 1.5 billion).

This is according to data from the monthly Bank Survey on Mortgage Lending, the Ukrainian News agency reports.

A brief summary of the survey results:

- 522 loans totaling UAH 1 billion were issued in the primary real estate market, of which 262 loans totaling UAH 497 million were secured by property rights to future real estate;

- 388 loans totaling UAH 697 million were issued in the secondary real estate market;

- the weighted average effective interest rate was 8.25% per annum in the primary market and 9.38% in the secondary market;

- the quality of the mortgage portfolio is good: the share of non-performing loans is only 12%.

By region, the largest number of mortgage loans in April were issued:

- in the Kyiv Region (307 contracts totaling UAH 595 million, or 34% of the total volume);

- in Kyiv (204 contracts totaling UAH 439 million);

- in the Lviv Region (45 contracts totaling UAH 101 million);

- in the Ivano-Frankivsk Region (41 contracts totaling UAH 79 million);

- in the Volyn Region (36 contracts totaling UAH 64 million).

During the survey, 38 banks—accounting for over 95% of the total gross mortgage portfolio—provided responses, of which 13 reported issuing new mortgage loans.

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