Mortgage lending in February decreased by 7% to UAH 1.4 billion

In February, Ukrainian banks issued 701 mortgage loans for a total amount of UAH 1.4 billion, which is 7% less than in January (UAH 1.5 billion).

This is evidenced by the data of the monthly Survey of Banks on Mortgage Lending, which was conducted by the National Bank, Ukrainian News Agency reports.

Briefly about the results of the survey:

- 386 loans for the amount of UAH 767 million were provided in the primary real estate market, of which 152 loans for UAH 280 million were provided under the collateral of property rights to future real estate;

- 315 loans for the amount of UAH 628 million were provided in the secondary real estate market;

- the average weighted effective rate was 8.25% per annum in the primary market and 9.46% 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 February was issued:

- in the Kyiv Region (225 agreements for a total amount of UAH 473 million, or 34% of the total);

- in the city of Kyiv (145 agreements for UAH 319 million);

- in the Lviv Region (46 agreements for UAH 95 million);

- in the Volyn Region (36 agreements for UAH 59 million);

- in the Vinnytsia Region (29 agreements for UAH 54 million).

During the survey, 38 banks with a share of over 95% of the total gross mortgage portfolio responded, of which 16 banks reported issuing new mortgage loans.

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

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