Boom for mortgage loans shows no sign of slowing down

Individuals have borrowed zł.5.6 billion from banks in the first four months of this year, a huge increase over the previous year driven primarily by mortgage loans to buy flats, which grew 61.1% yoy. The massive lending boom is showing no signs of slowing, as banks are still easing the lending criteria, hoping that the improving economic conditions will increase individuals' ability to service loans. However, the General Inspectorate of Banking Supervision (GINB) is beginning to be concerned about the lending spree and the lax criteria applied, such as banks offering money to cover 100% of the value of the apartment purchased. Another source of concern is the ability of consumers to service loans when interest rates go up. (Gazeta Wyborcza, May 29-30, p. 28) T.J.