After a long slow down in the sector and a standstill for the average loan size, mortgage crediting went up by 8% in July. This tendency is seen in almost all cities in Bulgaria, especially in Sofia, where the share of large credits soared last months, according to Credit Center's July 2008 statistics.

„Consumers with above average income are those capable of taking long term financial decisions at this moment of financial crisis and uncertain future for the European economy,” said Tihomir Toshev, Credit Center executive director. “In Bulgaria such are people with income of 1,000 leva + per family member. In smaller cities the figure drops to 750 leva +. Besides the stable income, those people are usually well educated and more optimistic and are not easily frightened by prognoses,” he added.

The interest rate hikes this month for the first time did not affect borrowers and the number of withdrawn applications dropped on half, from 18% to 9%.

The average size of loans for the first time passed the benchmark 50,000 euros and stood at 50,376 euros. The hike is greatest in Sofia, where the average credit size is 67,000 euros. This is not a surprising figure in view of the high home prices in the capital city. The average price for the most popular type of home in Bulgaria – the one bedroom apartment is above 70,000 in Sofia and the banks usually cover 80% of the total sum.

% of Credits in Terms of Size Size in EUR% from 1 July 2008 to 31 July 2008from 0 to 10 0001,12from 10 000 to 30 00023,34from 30 000 to 50 00034,83from 50 000 to 70 00020,22From 70 000 to 90 00011,62above 90 0008,87


Another credit record was set in July – the withdrawal of a 500,000 euro individual credit. The borrower will use the money to purchase an apartment in Sofia's Lozenetz neighborhood. The monthly installment is 3,500 euros and the loan maturity is 25 years.

The EUR/BGN proportion stood at 86/14 in June. Credits in BGN are currently more expensive than those in EUR.

CityAverage Size of Loans In EUREUR/BGN % ProportionSofia6779690/10Varna50329100/0Burgas3970198/2Plovdiv4292596/4Stara Zagora3497571/29Ruse2695270/30Blagoevgrad2983666/34Veliko Tarnovo2750082/18Pleven3450089/11Dobrich3690066/34Kardjali3128242/68Sliven2806066/34Yambol3025626/74

July 2008 Credits DataUp To 10 Years2,66%10 to 15 years12,00%16 to 20 years17,34%21 to 25 years29,33%26 to 30 years26,67%30 years +12,00%