In Coming Years, The Cost Of Mortgage Loans In Russia Will Increase

Jun 24, 12:03 am

The crisis on international financial market and rising borrowing rates, which attract banks in Russia have forced many banks to raise rates, tighten all sorts of requirements for borrowers, and some banks, in general, refuse to work with a mortgage. The first chairman of the City Mortgage Bank Ruslan Iseev commented on the situation on the Russian mortgage market: "The volume of lending until reduced slightly, but if the crisis deepens, they may fall further along with tighter credit conditions. All these consequences of the simple fact - the cost of raising banks' resource base has increased quite seriously. " Some analysts believe the downward trend in the cost of mortgages is not expected in the next year 2009. "I think the market growth will be lower compared with 2007, but still quite strong (35-50.

Sberbank Russia also discusses the adjustment of interest rates. About this in mid-February, said the head of Sberbank German Gref. How much will change interest rates - depends on the state of financial markets, both external and Interior "- says a representative of the City Mortgage Bank. According to experts from Alfa-Bank in the coming years the mortgage would be best developed in regions, cities of the second tier. Specialist from a bank Delta Credit Bank said that the Russian mortgage market is in its early development, and a tendency to increase in activity of banks and citizens in this sphere of activity is inevitable. About the tightening of conditions for borrowers, Vice President of Business Development Bank of the Delta-Credit "Dinara Yunusov explained:" I would say that conditions have not tightened, and leads to reasonable regulations that allow banks to control their risks, while maintaining an acceptable level of profitability. "
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