The average size of mortgage credits in the country has risen to 46,315 euros in May, data by CreditCenter reveal. The increase is attributed to both rising home prises and the fact that consumer mood has calmed down after the several interest rates hikes. The EUR/BGN proportion stays within the forecast levels, at 75/25 in May.

In order to keep the size of their monthly installment unchanged, many borrowers have renegotiated their agreements with the banks, as to both the interest rate and the period of the credit.

In the past two months we saw a completely new tendency for the local market emerge – borrowers repay part of the principal with own funds in order to reduce the size of the debt, so as to be able to keep the monthly installment the same after the interest rate has been hiked. Many households have decided to do so, which is a sign of their good financial health, according to CreditCenter.

“I expect mortgage crediting in the country to grow by some 45-50% by the end of the year,”said CreditCenter CEO Tihomir Toshev,”This is less than what we saw last year, but we must take into account the impact of the international financial crisis and the efforts of central banks around the world to slow down the dynamics of crediting.”

Types of creditHome purchase84,46%Repair and construction works1,36%Personal use12,42%Regulated Land Property1,76%

CityCredit Size in EUREUR/Leva ProportionSofia5530373/27Varna5195180/20Burgas4234388/12Plovdiv3625070/30Stara Zagora2936560/40Ruse3019365/35Blagoevgrad2827056/44Veliko Tarnovo2735051/49Pleven3321555/45Dobrich5035650/50Kardjali2368545/55Sliven2335065/35Yambol2845550/50

Types of credits as to period (May'08)Up to 10 yeras5,71%10-15 years15,72%15-20 years21,42%20-25 years25,73%25 years +31,42%