In fresh years, Poles have enjoyed access to relatively inexpensive loanswhich drove the real property marketplace and consumption. Unfortunately, this period is coming to an end. Monetary Policy Council (PRP), in the cycle of interest rate increases that started in October 2021, systematically raised money costto fight rising inflation. As a result, loan instalmentsboth mortgage and cash, They went up., a the credit capacity of Poles decreased significantly.
The last rise took place in July 2022 and the feet remained at the same level until until September 2023 erstwhile the RPP decided to reduce interest rates by 0,75 basis point. The current main interest rate is 5.75%.
For many borrowers this means increase in the debt instalment by respective 100 PLN per month. For example, for a mortgage debt of PLN 300,000, drawn on 30 years with a margin 2%, debt instalment at mention rate at 5.75% about 2 273 PLN. Before the increase cycle, at a mention rate of 0.1%, the instalment of the same debt was around PLN 1250. That means increase by over 1000 PLN, which is 81.84%Oh, my God!
The increase in debt instalments is not just a problem for those who are already paying their debts. That, too. barrier for those who are just planning to buy an apartment or another property on loan. Higher interest rates means lower creditworthiness, and consequently, difficulties in obtaining credit for the dream M.
Data Credit Information Office (BIK), in 2023 the banks granted 4.8% little housing than in the year 2022. The value of loans granted decreased by 11.1%. This decrease is straight related to rising interest rates and worsening of Poles' creditworthiness. In April 2024 BIK noted 20.7% increase on an yearly basis, the value of the housing loans requested. But keep in head that this is inactive 5.7% lower score compared to March 2024. In addition, the value of mortgage loans granted in April 2024 was higher by 71.2% compared to April 2023.
What happens to interest rates? Analysts are divided in their forecasts. any of them believe that the RPP may choose to further interest rate reductions in the following months, if inflation begins to decline and the economical situation deteriorates. Others, on the another hand, anticipate interest rates to emergence even more if inflation continues to be high.
What are possible solutions for borrowers? Persons who have problems with the payment of credit instalments should as shortly as possible contact your bank and talk about the anticipation of debt restructuring. The bank may propose, for example, extension of the debt period, which will reduce the monthly instalment but at the same time increase the full cost of credit. Another solution may be temporary suspension of payment of instalments or changes in borrowing interest rate.
It is besides worth considering overpayment of creditif we have free resources. Overpayment allows reduction of outstanding capitaland therefore, on reduction of the instalment or shortening the credit period.
In the current situation The rational management of the home budget is crucial and avoiding excessive debt. Before any financial commitment is entered into, it should be precisely examine your financial situation and make certain we can pay the debt payments even if interest rates increase.
End of the era of inexpensive loans This serious challenge for many Poles. Increase in debt instalments, a decrease in creditworthiness and uncertain future of interest rates make buying an flat more difficult. In this situation a liable approach to finance is peculiarly important and precise expenditure planning. Remember, credit is simply a commitment for many years, a The decision to enlist him should be well thought out.
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