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Current date: 2010-02-09 07:19

Top Bulgarian banks raise rates in Jul

Several of Bulgaria`s leading banks hiked their rates on mortgage and consumer credit programs in July, shows data of fincity.bg, the Bulgarian comparison shop portal for financial products and services. The increase in mortgage rates is 0.1% to 0.5% while the cost of consumer loans edged up 0.1% to 1.45%.

Borrowers continue to shun euro-denominated loans despite the superior terms in comparison with programs in the local currency.

`This is due to the persistent belief that the lev is depreciating because of the high inflation,` said Nikolai Staikov, the FinCity executive director.

Demand for euro-denominated consumer loans is expected to pick up over the next couple of months as borrowers take the bait of lower interest rates. The reverse trend is shaping demand on the mortgage lending segment where euro-denominated loans have the upper hand.

The survey found the home buyers are looking for the maximum term of maturity and the lowest percentage of co-financing on the part of the borrower.