Several Bulgarian banks are launching promotional offers for mortgage loans in the beginning of the active season for the purchasing of real estate properties. The new offers will be related mainly to the loan servicing fees, according to credit consultant Best Credit Bulgaria, which works in partnership with 12 banks.

One of the promotional offers, which is expected in the next few weeks, will feature a reduction of the application fee.

Certain cuts will also be made in the loan utilization fees. The fee currently ranges from 1.0% to 1.5%. A 50-percent cut would lower significantly borrowers' costs. This means between 250 and 375 off the initial expenses for a 50,000-euro loan.

Some of the banks will probably revoke the early repayment fee as part of their promotional offers. The fee ranges between 2% and 5% with the various lenders and is of great importance to borrowers planning to repay part or the entire loan early.

„The interest rates in loans are not expected to decline at least until the beginning of 2009. The interest rates are likely to gradually go down only after the global financial markets settle down”, Plamen Peychav, manager of Best Credit Bulgaria, said.

An increase of the interest rates by the European Central Bank (ECB) is also slightly possible, even if the inflation in the euro area continues to grow. ECB has to balance between the risk of high inflation and the threat of a recession and an interest rate hike would raise the value of the euro against the dollar, which would result in additional difficulties for the European economies, Best Credit Bulgaria said.

Best Credit Bulgaria provides consulting for home, business and consumer loans. The company is among the founders of the Association of Credit Consultants in Bulgaria (ACCB). The company works with 16 lending institutions and operates offices in Sofia, Bourgas, Varna Plovdiv, Rousse and Haskovo. Best Credit Bulgaria has been offering consultancy services since 2006 and is owned by Euro Credit.