Demand for mortgages halved last year

Last year, the number of newly issued residential mortgages decreased by 51.4 percent, and their value fell by 49.1 percent y/y, to PLN 45.4 billion, according to data from the Credit Information Bureau (BIK), which forecasts that this segment will face a further drop in value, to PLN 28 billion, in 2023. What draws attention in the BIK statistics, however, is the significant increase in 2022 in the number and value of new non-bank loans. However, a stable situation is observed in the cash and installment loan segment.

"Last year was a difficult year for the credit market. Poles took out fewer loans than in the previous year, which was particularly evident in housing loans. Banks granted them about PLN 45 billion, which is as much as 49 percent less than a year earlier. This was due to high-interest rates, inflation, a rise in the cost of living, but also the uncertainty in the market that persists to this day," Dr. Mariusz Cholewa, CEO of the BIK, said.

(Newseria)