SEB Bank issued 2% more mortgage loans than a year prior
In the first six months of 2018, SEB Bank has issued EUR 64.6 million in mortgage loans to private persons, which is 2% more when compared to the same period of 2017. 46% of loans were provided in cooperation with Altum guarantees to families or young specialists, as reported by SEB Bank representative Jeļena Kontusa.
Most loans were issued to assist with housing affairs: approximately 14% of loans were issued for housing acquisition and 4% for house construction. Since the beginning of the year, SEB Bank’s total credit portfolio has increased by 2.7%.
«Buyer activity is recorded the highest in Riga and its surrounding territories for both the number of approved loans and size of those loans. 80% of all allocated funding went there. Across regions activity is the highest in Jelgava, Liepaja, Ogre, Valmiera and Sigulda. Residents purchase apartments more often on the second-hand market. 15% of apartments are bought in new project buildings. In addition, for the second consecutive year we have noticed rising demand for private homes,» says SEB Bank board member Arnis Škapars. Around 45% of loan-takers are aged 30-40 years. Active loan-takers are men aged to 40. In the age group older than 40, however, women are more active. The average age of loan-takers using Altum guarantees are 28-30, according to data from SEB Bank. «Until now loans with Altum support have formed 40% of the total volume. However, this year Altum loan volume has increased to 46% this year. Support for young specialists also plays a major role in this. Since the beginning of the year, around 540 loans with Altum support worth more than EUR 33 million have been provided to clients. 83% of them were provided to families, whereas 17% were provided to young specialists. Activity was the highest in Riga in this category as well. High activity was recorded in Liepaja, Jelgava and Ogre,» Škapars continues.
More and more people consider picking credit payment insurance to ensure safety of their finances. Such insurance solution was picked for 70% of housing loans issued this year.