Hungary’s central bank mulling ways to cheapen mortgages

Budapest, February 15 (MTI) – Hungary’s central bank will in the future focus on the mortgage market which it sees as sclerotic while its products are too expensive, Márton Nagy, the National Bank of Hungary’s deputy governor, said in an interview to the daily Magyar Hirlap.

In the interview published on Thursday, Nagy said the bank wanted to ensure a fast expansion of mortgages in the next few years.

“Now a fresh mortgage market is being built on forints and its structure must be sound,” he said.

Many banks avoid competitive rates as they guard their profitability, he said, adding there is insufficient price competition on the Hungarian market. And by international comparison, Hungarian banks slap on too many extra charges.

Nagy said there are three issues that can be addressed. First, it is hard for consumers to compare mortgage products. Second, changing banks involves a lot of red tape and expenses. Third, the Hungarian banking system is inefficient compared with its international peers.

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He said banking in the country should be made more efficient and cheaper. Also, lawmakers should adopt new and “healthy” rules in the area of digitalisation, and the NBH is working on preparing a package of regulations for governing its operational framework. Nagy added that central bank experts will be providing responses to the three areas outlined in the next few months.

You can read here the original article in Hungarian. 

Photo: Daily News Hungary

Source: MTI/Magyar Hírlap