Sunday September 21, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Lenders plan for mortgages totaling 500-600 mln this year

By Alekos Lidorikis

Demand for new mortgage loans is still low in terms of quantity, but the quality of candidates is high, say competent banking officials.

“The funds that banks have made available for loans in the housing credit sector are estimated at 500-600 million euros for the whole country for the whole of the year, which is far more than the demand for household loans, which remains particularly low,” a senior official at one of the country’s systemic banks told Kathimerini.

“What is generating optimism is that most applications for mortgage loans nowadays stand out for their quality, with some seven out of 10 gaining approval, while during the financial crisis the approval rate had dropped to just four in 10,” the same official added.

The views Kathimerini has heard tend to agree that candidate borrowers are now better informed regarding mortgage credit, particularly in terms of the necessary criteria they must fulfill in order to have their application accepted. They also appear to be more measured, turning to the banks only after having made sure they will really be able to keep up with their repayments.

Another fact that has resulted in better-quality applications is that banks have strictly capped their funding rate at 75 percent of the property’s commercial value, while before the crisis the rate had reached up to 100 percent. Lenders have advertised this policy shift via leaflets and at their branches, deterring a significant number of potential borrowers from seeking a housing loan and risking rejection because they would not be able to repay it.

Banks also place emphasis on home improvement loans, as a significant number of households have opted to renovate their existing residence instead of buying a new, bigger one. Home improvement loans require visits by a bank-appointed specialist and the submission of contracts and receipts. Before the crisis such loans went straight toward other purposes.

Statistics show just how far the housing credit sector has to go to return to normal levels: New mortgages issued last year totaled just 200 million euros, down from 2 billion euros in 2011 and 16 billion euros in the heyday of 2006. The aim now is for new mortgages to climb to 1 billion euros next year.

ekathimerini.com , Wednesday May 21, 2014 (22:47)  
Record sum of new debts to the state in August
‘Greece can meet its needs on its own’
Cyprus civil servants´ strike called off
Elliniko investors eye Cyprus project warily
Results of probe into 20 Lagarde list names due soon
Members of the Financial Crimes Squad (SDOE) and tax inspectors involved in an investigation into the so-called Lagarde list of Greeks with Swiss bank accounts expect to be able to announce ...
Police refute reports of Jihadi training
Greece is not a training ground for Jihadis, the Greek police said in a statement released late on Friday in response to reports in the local media claiming that radical Islamists have been ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system – whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Results of probe into 20 Lagarde list names due soon
2. Police refute reports of Jihadi training
3. Gov’t drafts plan to secure exit from memorandum
4. Greek commuters have relatively long wait
5. IKA uncovers benefits scam at Kerameikos branch
6. Man dies in well accident
more news
Today
This Week
1. ‘Greece can meet its needs on its own’
2. Record sum of new debts to the state in August
3. Results of probe into 20 Lagarde list names due soon
4. Police refute reports of Jihadi training
5. Gov’t drafts plan to secure exit from memorandum
6. Special guard arrested over extortion, bribery
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. ‘Greece can meet its needs on its own’
5. Lost in the fog
6. Record sum of new debts to the state in August
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.