Fixed rate mortgage offers become cheaper

Polish banks have reduced many of their fixed rate mortgage offers in November, reversing increases seen during October, according to Bankier.pl’s monthly comparison. The average rate across the surveyed offers was 0.2 percentage points lower than a month earlier, returning to levels seen in September. The changes may improve borrowing conditions for homebuyers, although the cost of a mortgage depends on the borrower’s profile, the loan size and associated charges. The comparison identifies less favorable changes to lending margins.

Four institutions raised their margins, partly in connection with the transition to the new POLSTR reference benchmark. That means lower advertised fixed rates should not be mistaken for across the board reductions in loan costs. Borrowers should compare total repayment expenses and contractual conditions, while housing developers will watch whether improved financing offers translate into stronger demand for newly built homes.

(bankier.pl)