Mortgage rates fall in Bulgaria in late 2009 / 2010

November 24th, 2009
Mortgage Rates fall in BulgariaBulgaria-Inside review at the current situation in Bulgaria with banks, loans, mortgages in 2009 and estimate for 2010. The Bulgarian National Bank (BNB) has already indicated that lending volumes may increase from the start of next year. Lending to businesses and households increased by nearly 6% during September this year. During the last couple of months the banks have relaxed their lending policies a little and a few are said to be lending mortgages up to 80% of the property price. Nonetheless, the banks are still applying stringent income and property criteria. The regions where you are likely to obtain such a LTV ratio are the four main cities.

Some banks have reduced their mortgages interest rates which sparked the increased lending volume in September 2009 and gave an indication that the Bulgarian banks are seeing a potential upturn of the crisis. The lower mortgages rates and further reductions will set the scene for cheaper mortgages and for increased property transactions.

According to the BNB chief Ivan Iskrov the bank system in Bulgaria has ‘high capital adequacy’ and that it was stable with good indicators. During the first two quartiles of 2009, the banks profit overall profit is over 310 million Euros. The BNB also believes that the Bulgarian economy will start growing in the second half of 2010.

The Bulgarian Government is asking the banks to lower the interest rates for deposits and mortgages and is awaiting proposals and measures from the banks for reducing interest rates, to improve market conditions. The banks are currently paying out as much as 10% interest rates on deposit accounts, but as is seems the ‘deposit war’ as it is called is now over and the interest rates for deposit are beginning to decrease. The Bulgarian banks have realized that the there is no more fresh capital in Bulgaria and customers are only transferring deposits from one bank to another offering higher interest rates.

The reduction in the deposit interest rates will lead doubtlessly to lower mortgages rates in Bulgaria in 2010. Nonetheless, 2010 will still remain difficult for the Bulgarian banks as bad loans and defaults will still rise and are likely to reach a peak of 10%. A loan or mortgage is classified as ‘bad’ in Bulgaria when it is overdue for 90 days (compared with 180 in other EU countries)

On the property and real estate front, draft amendments to the Notaries Public Act are going to ensure that all property transactions are done through bank payments – and not cash as has been the case. This is a clear endeavour to halt money laundering. The buyer and vendor will be obliged to declare their bank account information for concluding payment on a property transaction or can use the notary’s account. This is excellent news and will encourage buyers as property purchases will be more transparent.

Bulgaria Mortgage Guide

November 16th, 2009

Mortgage Guide Bulgaria

Mortgage BulgariaA mortgage is a sum of money borrowed from a bank, building society or other lenders in order to buy a property. The mortgage is then repaid over time, together with added interest. There are many different types of home loans – including fixed, discounted and even offset mortgages – which is why an apparently cheap mortgage deal may not always be best for your needs

Whether you are a first-time buyer looking for a new mortgage or aiming to switch home loans at the end of a deal with an existing lender, you want to find the best option to meet your needs.

That’s not always as easy as it seems: there are thousands of mortgages available at any one time, from various lenders. They cover just about every type of deal and cater for all sorts of different requirements.

For example, a new homebuyer may want the security of a fixed rate mortgage and an existing borrower may just want a cheap remortgage deal – and those with bad credit will simply be looking for a specialised lender willing to give them a chance.

List of top banks in Bulgaria

On the websites of the resp. bank in Bulagria you will find the currents conditions and find a cheap mortgage in Bulgaria.

Alpha Bank – http://www.alphabank.bg/

Bulgarian National Bank – http://bnb.bg/

UniCredit Bulbank – http://www.unicreditbulbank.bg/

Central Cooperative Bank – http://www.ccbank.bg/

Citibank – http://www.citigroup.com

Corporate Commercial Bank – http://www.corpbank.bg/

D Commerce Bank Bulgaria – http://www.dbank.bg/

DSK Bank – http://dskbank.bg/

Bulgarian Development Bank – http://www.nasbank.bg/

Eurobank EFG – Postbank – http://www.postbank.bg/

First Investment Bank – http://www.fibank.bg/

ING Bulgaria – http://www.ing.bg/

Raiffeisen Bank Bulgaria – http://www.rbb.bg/

Societe Generale Expressbank Bulgaria – http://www.sgeb.bg/

Teximbank – http://www.teximbank.bg/

MKB Unionbank – http://www.unionbank.bg/

Emporiki Bank Bulgaria EAD – http://www.emporiki.bg

Piraeus Bank Bulgaria AD –http://www.piraeusbank.bg

Investbank Plc. – http://www.ibank.bg

The benefits of a cheap remortgage include:

  • Reducing your monthly repayments and making your outgoings more manageable
  • Releasing equity for you to make other purchases
  • Providing you with a fixed rate and financial peace of mind
  • Potentially saving you money with a better interest rate
  • Providing debt consolidation

Mortgage rates hit new highs in September 2009

November 5th, 2009

Mortgage rates hit new highs in September 2009The Moite Pari euro-denominated index rose almost twice as quicker than its local-currency counterpart due to price hikes by EIBank, Allianz Bank Bulgaria, UniCredit Bulbank, Raiffeisenbank and ProCredit Bank.Four Bulgarian banks raised the interest rates charged on lev-denominated mortgage loans in September, data from moitepari.bg website, which compares loan and personal finance offers of different lenders, showed.

The Moite Pari leva-denominated index, which tracks the average annual interest rates of 20-year mortgages, picked up five basis points to reach 9.61 per cent, the highest since was launched at the end of 2005.

Five of the fifteen leading local-currency mortgage lenders tracked by the index have revised their mortgage loan terms. Only Municipal Bank cut by the price of its most popular mortgage loan by two basis points after the central bank lowered its benchmark rate, the website said.

The price of Allianz Bank Bulgaria’s loans jumped by 0.76 percentage points as the interest rate grew nearly as much.

Raiffeisenbank’s Bulgarian arm added 30 basis points to the rate of its best mortgage offer, and the new service fee brought the total increase to 0.38 percentage points.

The SOFIBOR index rising 0.15 percentage points in September drove up the price of ProCredit Bank’s mortgages by 0.13 percentage points.

UniCredit Bulbank made a milder increase, adding eight basis points and halving application fee, for a total increase of seven basis points.

The Moite Pari euro-denominated index rose almost twice as quicker than its local-currency counterpart due to price hikes by EIBank, Allianz Bank Bulgaria, UniCredit Bulbank, Raiffeisenbank and ProCredit Bank. Up by nine basis points, the average annual interest rates of 20-year mortgages denominated in euro is now 8.46 per cent.

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October 6th, 2009

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