UOKiK wants banks to offer fixed-rate mortgages

The antitrust watchdog UOKiK said that it expects banks to introduce fixed-rate mortgage loans, which according to the office “offer better protection for the consumer during the long-term loan agreement and ensuring the stability of the financial sector in Poland.” “We are concerned about two things: first of all, how to inform clients about the risk associated with taking PLN-denominated loans with a variable interest rate. At the moment, clients are not always aware of the risks associated with this product. the interest rate should be a viable alternative to loans with a variable interest rate,” said Marek Niechciał, the president of UOKiK. UOKiK expects that “the banks will develop and implement solutions that will provide comprehensive and understandable information about the risk associated with the mortgage contract. In particular, it is about the risk of an increase in interest rates, this refers to the stage of contract conclusion, but also to its execution. Financial institutions, offering mortgage loans, should take into account the consumer's situation at every stage of cooperation, and not only when concluding a loan agreement.”