January-July 2016 witnesses substantial mortgage extension growth

In January-July 2016, banks extended 454,900 residential mortgage loans (RMLs) worth 775.3 billion rubles. The volume of RMLs extended from the beginning of the year exceeded by 39.1% a corresponding 2015 indicator and accounted for 20% of banks’ consumer loans portfolio, according to statistics posted on the Bank of Russia website.

The going on active participation in the mortgage lending of private banks resulted in the growth of their share in loans extended from the beginning of the year from 32.3% last year to 40.8% in January-July 2016.

Loans secured by credit claims on shared construction participation agreements extended from the beginning of the year account for about one-third of RMLs. This type of mortgage lending was characterised by a minimal overdue debt (0.3% against 1.7% for RMLs in general).

In July 2016, the interest rate for ruble RMLs returned to March 2016 level at 12.82% mainly due to a greater volume of RMLs extended by banks-participants in the residential mortgage government support programme.