Business news from Ukraine

MORTGAGE LENDING IN UKRAINE TRIPLES THIS YEAR

Ukrainian banks issued 5,626 mortgage loans worth over UAH 4.4 billion in January-July 2021, which is 2.3 times higher than the indicator for seven months ending July 2020 in the number of such loans and three times in volume, the National Bank Of Ukraine (NBU) said on Friday following the results of a monthly survey of banks.
According to the NBU, 974 mortgage loans for UAH 773.2 million were issued in July, compared with 955 loans for UAH 774.5 million a month earlier.
Some 21 banks reported information on the issuance of mortgages in July, and this is the largest number of market participants since the beginning of the survey in 2018, the regulator said.
The NBU said that the mortgage lending market remains concentrated: the five most active banks have concluded 90% of new deals. Loans for the purchase of housing in the secondary real estate market remain the main driver of the market: in July, their share exceeded 90% of all mortgage loans provided both in terms of the number of contracts and in terms of monetary volume, the regulator said.
The survey results indicate that the average size of a loan for the purchase of housing in July decreased to UAH 793,800 from UAH 811,000 in June, including the average size of a new mortgage loan for the purchase of primary real estate dropped to UAH 760,500 from UAH 851,000, and secondary – to UAH 797,000 from UAH 807,250.
According to the NBU, in July, the average effective rate of a mortgage loan in the secondary market rose to 13.35% compared to 13.32% in June, while in the primary market it decreased to 16.82% from 17.28%.

VOLUME OF MORTGAGE LENDING IN UKRAINE UP BY THIRD IN APRIL

The volume of mortgage lending in April 2021 amounted to UAH 789.1 million, which is a third more than in March and 10 times more than in April 2020, when the issuance of new mortgage loans almost stopped, according to the results of the National Bank of Ukraine (NBU) survey of banks.
According to the NBU on Wednesday, 997 agreements were concluded in April, which is a third more than last month and 7.1 times more than in April last year.
The NBU noted that in general, over the four months, banks issued 2,808 mortgage loans totaling UAH 2.2 billion, which is 2 times more in terms of the number of agreements and almost 3 times more in monetary terms compared to the corresponding period last year.
According to the survey, 90% of mortgage agreements in April were drawn up with five banks, which indicates the concentration of the mortgage lending market.
The NBU said that in April, the volume of loan issuance for the purchase of primary real estate increased by 1.5 times, to UAH 43.2 million, and secondary real estate – by a third, to UAH 168.5 million.
According to the results, the secondary housing market continues to dominate significantly in terms of the number and volume of lending, in particular, the share of mortgage agreements for the purchase of housing in the secondary market in February amounted to about 87% in terms of all new loans.
It is indicated that the average amount of a loan for the purchase of housing continues to grow and in April it amounted to UAH 791,000, including the average amount of a new mortgage loan for the purchase of primary real estate in the reporting month amounted to UAH 925,000, and secondary real estate – UAH 771,000.
According to the central bank, in April the average effective rate of a mortgage loan in the secondary market fell to 13.5% compared to 14.0% in March, and in the primary market it remained at about 17.4%.

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VOLUME OF MORTGAGE LENDING DOUBLES IN UKRAINE IN Q1

The volume of mortgage lending in January-March 2021 amounted to UAH 1.4 billion, which is two times more than in the same period in 2020, according to the results of a survey of banks conducted by the National Bank of Ukraine (NBU).
According to the report, in the first quarter of this year, 1,811 mortgage agreements were concluded, which is 51% more than in the same period last year.
According to the regulator, in March 2021 banks issued 750 loans for a total of UAH 577.4 million, which is 26% more compared to February 2021 and almost 2.5 times more than in March 2020. The number of new deals for the month increased by 22%, for the year – by 83%, the report says.
Almost 90% of mortgage agreements in the amount of UAH 506 million in March were drawn up with five banks, which indicates the concentration of the mortgage lending market.
The NBU noted that the growth of mortgage lending is mainly due to loans for the purchase of housing in the secondary real estate market. In particular, in March, the volume of loans issued for the purchase of housing in the secondary market compared to February 2021 increased by 28%, or by UAH 109.2 million, in the primary market – by 15%, or by UAH 10.3 million.
According to the survey results, the share of mortgage agreements for the purchase of housing in the secondary market in March amounted to 87% of all loans issued.
According to the banks’ information, the average size of a loan for the purchase of housing continues to grow, in particular, in February it amounted to about UAH 742,000, and in March – UAH 770,000. The average size of a new mortgage loan for the purchase of primary real estate in the reporting month amounted to UAH 837,000, and the secondary one – UAH 760,000.
It is indicated that in March the average effective rate of a mortgage loan remained almost unchanged: in the secondary market it was 14.0% (in February – 13.9%), in the primary market – 17.4% (in February – 17.1%).
As reported, the volume of mortgage lending in 2020 amounted to UAH 3.8 billion, which is 36% more than in 2019.

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