Consumer-friendly home loans have been available in the Hungarian home loan market since 2017 and can be applied for at any credit institution whose product has been awarded the MFL (Qualified Consumer Friendly Home Loan) certification. The rating is given by the National Bank of Hungary (MNB) on defined terms. Here are the key benefits of MFL loans.
National Bank of Hungary and consumer friendly home loan
No bank can complain about the results of the retail mortgage loan market after last year, and they expect good results in 2019 as well – several credit institutions told us earlier this year. As the borrowing grows, the E-Money Bank considers it an important goal to turn the population towards predictable, fixed-rate loans.
According to data released by banks and the MNB, more and more new customers are opting for consumer-friendly home loans, but a significant part of the home loan portfolio is still floating-rate , which is a worrying prospect of tightening monetary policy.
The MNB’s supervisory branch and the Hungarian Banking Association have recently developed a package to provide a safer alternative for those who currently have short-term, variable-rate mortgages. We have written more about this in this article.
You can take out consumer friendly home loans with these banks
The award of consumer-friendly certification is subject to a number of conditions set by the MNB. According to the information on the MNB’s website, the following banks have been rated:
The full list is available here.
What makes a home loan consumer friendly?
The main characteristics of consumer-friendly loans are the conditions that must be met in order to receive the MFL seal from the MNB. Let’s look at these in detail:
Most importantly: be safe and predictable
One of the most important prerequisites for MFL loans is that only repayments that are equal in monthly installments are allowed – this is called annuity repayment. The interest period should be a minimum of 5 years, plus 10 or 15 years, or fixed over the entire term, which is the safest way.