Retail loan portfolio reached HUF 130 billion in 2018!
Banks are increasingly impatient with debtors.
Well-paying debtors strive to repay the debt as soon as possible.
- In 2018, domestic credit institutions sold 129 billion worth of overdue retail loans for a total of HUF 52 billion.
- In 2017, banks sold less than HUF 205.2 billion of non-performing loans.
- The peak year was 2016, when credit institutions were freed of HUF 425.7 billion. Then the MNB allowed the banks to give them another chance to repay the loan, if not, they could terminate the contracts.
In 2018, most of the loans from home and freelance mortgages went to debt managers. Debt collectors went for $ 35 billion in home loans and $ 58 billion in freelance mortgages.
Act quickly against non-paying freelance and auto-authentic customers
Large-scale reviews over the years have also resulted in a fall in the rate of household loans over 90 days to 4.5%. This value dropped from 19% to the current percentage. Even those who pay off with relief are paying more and more discipline!
In 2014, half of the loans fell, while last year only a quarter of the renegotiated loans became overdue for 90 days.
Households’ loan sales to debt managers (HUF billion)
The improvement in housing loans is particularly significant.
The proportion of market loans overdue for more than 90 days
- In 2015, before the big “portfolio cleanup”, it was 15%
- currently 2.4%.
- In the case of overdraft mortgages, the same ratio dropped from 32% to 11.37%.
More and more people are counting on good debtors, and the amount of prepayments and early repayments is increasing, reaching HUF 400 billion last year.
Prepayments can be used for home savings funds or other savings
Free Mortgage Loans Are Repaid At The Fastest Rate! More than one third of capital repayments were prepayments.
Early repayments and early repayments may continue to increase this year as former foreign currency lenders can begin to redeem their forint-denominated loans four years ago in a jointly agreed program between the MNB and the Hungarian Banking Association. They have an interest period of 3 months, according to the MNB, and if they were swapped for a more fixed rate, more predictable arrangement, the loan would become more secure.
Lending is very strong and new loans are always considered to be performing. Of the new disbursements, 882 billion were mortgages for residential or non-residential use, of which subsidized ones accounted for 64 billion.
State-subsidized housing loans are currently being used for new housing besides the Family Home Creation Benefit (CSOK), and the interest rates on subsidized loans for second-hand housing are at market rates.
The number of loans taken out with subsidies will increase!
2019 will be the year of subsidized loans!
Because families will also be able to take advantage of subsidized loans to buy used homes, which they cannot compete with in the market!
- two children up to 10 million,
- a loan of up to $ 15 million in state subsidized interest for three or more children.
The interest on these loans will remain at 3% until the end of the maximum term of 25 years.
Personal loans are also on the rise, with new disbursements amounting to HUF 435 billion in 2018, with credit institutions putting out nearly 70% of the credit outstanding on the market last year.
Car loan portfolios are also relatively new, amounting to HUF 85 billion last year, which is half of the total loan portfolio.
There are still many who are defaulting on old car loans, and over 90 days car loans are still over 17%.
If you have a housing goal, would like to take out a home loan, are interested in your options, or may have been interested in the new CSOK changes, are interested in the future details of your new family action plan, call our credit brokerage experts