On the prospects for mortgage lending in Ukraine, trends and forecasts, told Building.ua Ivan V. Kuzovkin, Deputy Chairman of Bank of Cyprus.
Building.ua: Summing up 2010. How was this first for the mortgage market in Ukraine?
The only significant change in the market include increasingly moving banks on a floating interest rate.
Building.ua: Following a 2010 volume of mortgage loans was issued by your bank with which the interest rate?
I. Kuzovkin: Our bank a year ago, credited at a rate of 22-23% per annum. 2010 ended with shutters is less than 20%, now a mortgage loan from the Bank of Cyprus can be taken at a rate of 14.9%. This is actually falling by 10 percentage points.
The results of such a decline is too early as yet another change in rates at our bank occurred only in early February.
In the past year the Bank lent about a thousand transactions to purchase commercial and non-real estate. The average loan volume was - 200-300 UAH.
Building.ua: How much credit was given for the entities?
I. Kuzovkin: The volume of loans to purchase real estate for businesses is difficult to call, at least for the reason that the Bank of Cyprus not only offers loans to purchase real estate, but multitselevye loans. However, it is obvious that as long as that strong demand for real estate acquisition by entities we do not see. Customers behave cautiously and wait.
Building.ua: Who are the players of the construction business in Ukraine cooperates bank? Under which objects are preferable for the bank to issue loans: residential, commercial real estate?
I. Kuzovkin: We are actively cooperating with various developers. In Kiev, we are working with construction companies as "NEST", "Capital" and many others.
First of all, we are interested in lending to commercial real estate, because she demanded, especially with respect to commercial real estate and hospitality facilities. Office property is less interesting in view of the fact that here the proposal is still far exceeds demand. We have also developed partnerships program lending both primary and secondary residences.
We used in 2010 in order to find the key to find the formula: as credits for housing, which has just finished building. Now we are increasing our customer base among developers, we offer this new product. Construction Financing Fund - one of the two legal ways of selling to customers unfinished housing. Another method - this bond. Other ways because there is no object, there is no registration for him. Therefore, creating the FSF, the developer is able to sell the unfinished apartments. Bank is the guarantor that the money will be sent to the building: the construction of monitors and controls the developer's obligations to its clients and can control, and could lend under this unfinished property, then there is no need for additional collateral.
There are a number of criteria by which we select partners. The builder must have at least 30-40% equity, which he will make to this construction, it must have the necessary licenses and necessary experience in building an elaborate business plan, objects which he constructs should be an attractive location with an attractive layout. In this case, I note that the implementation of construction projects sotszhilya also be attractive due to the price of one square. m. It can be and apartment buildings of any type.
It should be noted that housing prices are becoming more acceptable, and we focus on this business because the expect more growth in demand and the number of transactions was the purchase of housing.
Building.ua: What amount of mortgage loans (in monetary terms), the bank plans to issue this year, according to a lending rate? What are the average credit terms?
I. Kuzovkin: Our plan credits for real estate in the amount of 1 bln. We have already begun this process, we have reduced rates. Now the rate of 14,9% per annum, is a straight bet (our credit consists of 14.9% pa and 0.9% - one-time commission, no hidden fees in our loan is not). This loan is very simple, straight to the consumer, because the borrower can immediately see how much it will pay on this loan.
We lend on the annuity payment scheme, where each month the customer pays the same amount, including the body of the loan and interest, as well as the classical scheme of repayment, when the payment is reduced with each passing month. Each scheme offers some advantages.
Now, we lend up to 10-year fixed rate (which does not change during the term of the loan), as well as introducing a new product - real estate loan up to 20 years with a floating rate.
One of the advantages of our product for individuals - we appreciate the ability to pay customers the cost method. We ask the client to provide all kinds of bank account statements, the costs for the previous period, purchases, investments in apartments, cars, long-term assets. This may be a movement account of your card account, it could be an agreement to purchase a vehicle, an agreement on investing in real estate with checks of making amounts. It is the American method, where incomes are measured at cost. Average loan amount, we are constantly growing: last year it was about 100 thousand UAH, today it is up to 300 ths.
Building.ua: How active bank plans to expand mortgage lending?
I. Kuzovkin: Bank of Cyprus is positioning itself as a conservative bank with a very prudent policy risks. We give preference to the mortgage loans, including mortgages occupies a leading position. We pay special attention to this type of loan. Because our range of products is wide for mortgage lending as individuals who are buying for yourself first apartment, and for representatives of micro - entrepreneurs who want to invest in real estate for their business. I would say that mortgage lending - one of the leading destinations in our bank.
By the end of 2011, Bank of Cyprus plans to offer mortgage loans and many other financial services clients in 12 regions of Ukraine.