Banks predict a fall in average mortgage rates below 10%

© RIA Novosti / Natalia to Seliverstova in fotobanka percent. Archival photoBanks predict a fall in average mortgage rates below 10%© RIA Novosti / Natalia to Seliverstova the image Bank

Russian banks have shared their predictions for the mortgage at the end of the current year it will fall below 10% annual, follows from poll RIA Novosti news Agency of a number of major Russian banks.

The leading Bank in the mortgage market in the country is Sberbank, which accounts for over half of the total mortgage market (more than a trillion rubles). The second is «VTB 24», which is a 22.9 per cent of the market. According to Rusipoteka in the first quarter of the third Raiffeisen Bank, whose share for the period increased 3 times.

Sberbank, which sets the trend in the credit market, August 10, lowered interest rates on mortgages for the purchase of new houses and apartments on the secondary market by 0.6-2 percentage points, which led to the increase in mortgage applications in three times and increase their number by more than 30%. After VTB group, on 17 August announced the reduction of interest rates on the mortgage: loan for purchase of ready housing you can now take the 9.5-10%, buildings — by 9.7-10%. As the Director of mortgage crediting Department of Bank «VTB 24» Andrey Osipov, after reducing the rates, the flow of client orders increased on average by 25%.

Earlier, the Bank of Russia reported that rates are now a record low in June, the weighted average rate on ruble mortgage housing loans made up 11.11%. AHML expects that by the end of the year she will fall below 10%. The head of the Central Bank Elvira Nabiullina said earlier that by 2020, the key rate may fall to 6.5-7% with an inflation rate of 4%. The head of the Ministry Maxim Oreshkin in July, said that in 2018 mortgage rates may be reduced to 8-9%.

Shared their forecasts and major Russian banks.

«In 2017, we expect record demand for mortgages. After lowering rates at the end of June 2017 we will see an increase of issued mortgage loans in more than 2 times. The number of requests received on the mortgage loans tripled,» commented the Bank «FC Opening».

«AHML expects that the Outlook on the volume of mortgages on the 1.8 trillion rubles by the end of 2017 will be exceeded. And it is quite likely. We have an average monthly issuance of mortgage loans increased by 10-15% per month» — said Vice-President of Bank «Russian capital» Leonid Batsy.

«Compared to the post-crisis period in 2017 already showed a record demand for credit products. The flagship, of course, is a mortgage», — said the press service of SMP Bank.

«By the end of the year it is planned significant growth of the loan portfolio. The Bank’s loan portfolio already exceeds 12.5 billion rubles. MCB only seven months of the current year has issued more than one billion rubles in mortgage loans,» — said in the Bank.

Not a single mortgage

Despite the fact that the mortgage was a significant growth factor for Russian banks, they note, and other loan products that contributed to the growth — cash loans, car loans and credit cards.

The growth of demand for cash loans noted in VTB. «The portfolio of cash loans since the beginning of the year showed an increase of more than 11%, exceeding 200 billion rubles. For the six months customers have issued more than 93 thousand of cash loans amounting to more than 52 billion, a quarter higher than the same period in 2016,» — said the press service of the Bank.

In the Bank «FC Opening» has also noted increased demand for cash loans. «Our clients are the most popular programs that allow you to get cash without collateral and guarantors for a period of 2 years» — said in the Bank «FC Opening».

The high level of demand for consumer loans, especially among credit card holders, note in MCB. «The Bank’s loan portfolio already exceeds 12.5 billion rubles, while 1.1 billion rubles – funds that were used by the credit card holders», — told in the press service of the Bank.

In «VTB 24» noted that the greatest increase in loans to individuals showed the segment of auto loans. «In the first half of the year was issued more than 47 thousand credits for the purchase of cars total amount of 28.9 billion rubles, which is 42% higher than the figures of January-July of 2016,» the Bank informed.

However, the most interesting product for banks, according to Monastyrshina of PSB in the current and next year will be just the mortgage. «In 2017-2018 mortgages for banks will be the most interesting product in the ratio of risk and yield,» he said.