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At the end of 2014, FX mortgages in Hungary accounted for 52 percent of the total but at the end of June this year just 0.1 percent were denominated in foreign currency.

The value of FX mortgages in Hungary fell to 4.7 billion forints (EUR 15.3m) by the end of June 2017, down from 6.8 billion at the end of 2015, according to Central Statistical Office (KSH) data. This compares with a total stock of mortgages worth 2,917 billion forints (EUR 9.5bn).

The total value of home loans had been falling almost continuously since 2011.

Total home loan outlays equalled 8.3 percent of GDP at the end of June 2017.

Loans provided by banks accounted for 58 percent of the total at the end of June. Mortgage institutions provided 28 percent of loans, savings and credit cooperatives 3 percent and building societies 10.8 percent.

Hungarians had 640,000 home loan contracts at the end of H1.

Some 89.1 percent of all loans were of prime quality. Fully 3.1 percent required “special attention”, 0.7 percent had “below average” quality, 3.5 percent were of “dubious” quality and 3.6 percent were “bad” quality loans.

The average maturity of home loans in H1 2017 was 15.1 years, up from 14.3 years in the same period last year.

Loans for new home constructions had an average maturity of 17.8 years, ones for purchasing new homes had 17.5 years and resale home purchase loans had an average maturity of 15.7 years.

As we wrote before, the Hungarian government has decided to help families with their mortgage payments through granting one million forints (EUR 3,300) if their third child is born after January 1 next year, and providing the same amount per each further child, a state secretary at the human resources ministry announced on Thursday.

Photo: Daily News Hungary

Source: MTI/KSH

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