Mortgage lending down 33% to UAH 672 million due to cyberattack on state registers in December

In December, Ukrainian banks issued 379 mortgage loans for a total amount of UAH 672 million, which is 33% less than in November.

This is evidenced by the data of the monthly Survey of Banks on Mortgage Lending.

Key findings of the survey:

- most loans by volume and quantity were issued on the secondary real estate market;

- the weighted average effective rate on mortgage loans in December increased to 8.8% per annum compared to 8.4% in November.

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

- in Kyiv and the Kyiv Region (202 contracts for a total amount of UAH 384.1 million, which is 57.2% of the total);

- in the Lviv Region (23 contracts for UAH 45.6 million);

- in the Ivano-Frankivsk Region (17 contracts for UAH 28.1 million).

During the survey, 38 banks responded with a share of 98.9% of the total gross mortgage portfolio as of the end of 2021, of which 12 banks reported issuing new mortgage loans.

The mortgage segment remains driven by preferential lending within the framework of the eHousing program.

In the second half of the year, lending under this program slowed down after record volumes due to a change in the terms of lending by the operator (Ukrfinzhytlo) and a lack of funds.

A significant factor in the slowdown in mortgage lending in December was the suspension of a number of state registers due to a cyberattack and the related temporary inability to conclude real estate purchase and sale agreements.

The share of mortgages in the retail loan portfolio increased to 13.5% at the end of the year, but remains quite small, so the slowdown in mortgage lending did not affect the dynamics of the retail portfolio.

Net hryvnia loans to the population in 2024 increased by almost 40%.

As Ukrainian News Agency earlier reported, in 2023, Ukrainian banks issued 6,114 mortgage loans for a total of UAH 9.1 billion.

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