Hi,

I hear that CEE banks are asking for lower LTV's before lending, i.e. typically up to 35% deposit.

Can the banks apply the same rule for mortgages under way and that are currently being repaid?

Cheers.

I doubt it. I've just had a 90% LTV offer on 2 properties in Prague at a sensible rate of interest - 5.6%
Huw

I also just got 100% finance on prague, albeit at a slightly higher 5.99%. I was there last week and mortgage market so far seems ok

Huw,

Who did you use for 5.6%? Buy through a company or EU card? Got a SRO at present and bloody fed up with the costs. May get the EU card for a recent purchase and have both running. I assume the interest and other costs can be offset in the same way?

Cheers,


John

Home owner loans are getting much harder to get as banks become aware that the property market is going to fall 25% +, this is a RECENT development, its not just about the %LTV now, but rather CLTV levels - the overall customer debt including credit cards / Personal loans / mail order accounts / store cards - so its not just the % size of your mortgage to the value of property anymore, the situation is now such that banks are only lending to customers that have LESS debt than 70% CLTV.

Before anyone with 100% CLTV could get a home owner loan if they had equity available in their property.

Its no longer just about the amount of equity in your property (%LTV) that you have, you could have 60% LTV right now but if your CLTV is over 70% there is just no way you will get any kind of Home owner loan or Mortgage right now.

As I mentioned this has only just come into effect in the last several months and this tightening effect has not really been reflected in the figures yet.

I work in finance, there is NO sign of any relaxation of lending at the moment - if anything it is getting more difficult to get a loan of ANY description.

The mechanisms that the government have put in place will have no effect on personal lending or on home owner lending due to the ongoing house price crash and due to the recent changes to lending that banks have put into place to prevent themselves losing money the in effect have made it far harder to get a mortgage thus making the housing price crash worse. The clearest case of a negative feed back loop that I ever saw.

Want to increase your chances of getting a mortgage? Get rid of any personal debt you have, Car loans, Credit cards ..... any kind of loan - including interest free / buy now pay later etc etc etc.

Ive been offered 95 per cent by Central Group and pretty good conditions aswell.people in Prague i deal with ar not too deflated by property crashes elsewhere,there is no sub prime market here.

A worrying development today. I have been led to understand that interest rates for new mortgages are rising rapidly. Komercni Bank has/is increasing rates by 1-2%! If this is true, I am extremely concerned with the impact on property values.

LTV is one thing, rate rises are something else. This could be a real double-whammy.

Property Secrets - Any comments here?? I am near to closing on Central Park and concerned.......

From today's news-

KB raises mortgage interest;
more banks may follow
Komerční banka yesterday raised
mortgage interest rates by 0.6 percentage
point to 5.59% for loans up
to 85% of the property value and by a
full percentage point for 100% loans.
Jan Sadil of Hypoteční banka said
other banks may follow suit. [ HN 18 ]