Good Finance granted 10% more loans in quantitative terms in the first half of the year. In value terms, on the other hand, the figure was only 2.8% lower. In the first half of this year, the average value of credit granted through the Loan Lender House amounted to approximately USD 215 thousand.
Compared to the same period last year,
This value dropped by approximately USD 20,000. This is in line with the market trend, because according to the latest AMRON-SARFiN Report on housing loans and real estate transaction prices in the first quarter of 2013, the average value of the housing loan was over USD 189 thousand and was lower by over USD 20 thousand than in the first quarter of 2012.
The decrease in the average loan value is a consequence of the fall in prices on the real estate market.
However, compared to the same period of 2012, in this half-year the number of transactions carried out through the company increased by about 10%.
During this period
The total value of loans granted through the Loan Lender House amounted to almost USD 988 million, therefore it was lower by almost 27 million compared to the first half of 2012.
- The first half of this year showed that the fall in property prices was a key factor for many customers in deciding to buy a flat on credit. Yes, the whole market has shrunk in terms of sales value, but as developers confirm, the number of transactions has remained at a similar level as in previous years – comments Robert Pepłoński, President of the Loan Lender House. – Our company, although it recorded a slight decrease in lending, recorded an increase in terms of the number of concluded contracts. This is important information for us, because it shows that our advisors are effective and in most cases successfully lead clients through the credit process.
Second half of the year under 100% loans
Banks more accurately verify customers applying for a loan. First of all, they require higher income than a year or two ago. The form of employment and own contribution are also important.
Banks are slowly preparing to withdraw their loan offers for 100% of the value of the property, in accordance with the recommendations of the new Recommendation S of the Polish Financial Supervision Authority, which will apply from 2014 at the latest, namely 5% of the obligatory own contribution.