The National Bank of Hungary has recently published impressive figures on retail lending in May, and Hungarians are again boldly applying for loans from credit institutions. Personal loans and home loans are gaining unprecedented popularity, with banks putting up $ 30 and $ 60 billion in May, up 50 percent on home loans for the same period last year.
So we asked the banks how they rate the retail lending boom and what they expect for the remainder of this year.
We want even more
Good Finance told the Ramsay family that demand for consumer loans was above the market average compared to the same period of the previous year, and home loans brought in an otherwise high level of demand, and there was no change here. According to the bank, lending will increase even more in the winter months due to the low interest rate environment and consequently cheaper loans.
Good Finance will not be left out of the competition, it will also hit the consumer-friendly home mortgage rating. The application is currently under preparation, but the bank said that they already have products that are well in line with central bank pricing requirements.
Goodbank also valued the market for the Ramsay family. “In our experience, credit markets continue to grow dynamically this year, with sales of around 50% higher in personal loans this year and almost 40% higher than real estate loans in 2016,” the bank wrote in its reply.
According to the credit institution
A real breakthrough has been made since the crisis: they believe that the borrowing mood has now absorbed the impact of the financial and economic crisis of 2007-2008, and they expect to see full Hungarian personal loan sales in 2017 the previous (2007-2008) peak period. The market for mortgages continues to grow and the momentum of the population continues until the end of the year.
Goodbank emphasizes that today’s credit conditions are much more favorable than a few years ago due to external influences and increased competition. Real wages have increased in recent years and interest rates have fallen significantly, so today you can borrow on much more favorable terms, such as 5-10 years ago.
May has faded
May was the highlight of this year when it comes to personal loans. According to their information, they granted two and a half times more loans than in the same period of the previous year.
Further high interest is expected: due to persistently low interest rates and rising wages, households are more open to borrowing, and home equity investments also play an important role in home loans, says the credit institution.