Interest rate margins on mortgages increase

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The interest rate margins on new and outstanding mortgages to households increased in June. The fixed-interest rate on new mortgages increased by 0.02 percentage points in June, while the floating rate was stable.

 

In June, the interest rate on new mortgages to households from a sample of banks and mortgage companies was stable at 2.51 per cent. The fixed-interest rate on new mortgages increased by 0.02 percentage points to 2.50 per cent in June, while the floating rate was stable at 2.51 per cent, according to the statistics Interest rates in banks and mortgage companies.

The interest rate on outstanding mortgages remained stable at 2.55 per cent. The fixed-interest rate on outstanding mortgages continued to fall and went down by 0.02 percentage points to 2.88 per cent.

Figure 1. Interest rates on new and outstanding loans secured on dwellings to households. Monthly sample of banks and mortage companies

New loans, floating interest rate New loans, fixed interest rate Loans outstanding, floating interest rate Loans outstanding, fixed interest rate
June 2015 3.00 2.71 3.19 3.4
July 2015 2.87 2.73 3.15 3.38
Aug. 2015 2.83 2.7 2.93 3.36
Sep. 2015 2.78 2.71 2.91 3.4
Oct. 2015 2.60 2.61 2.88 3.33
Nov. 2015 2.57 2.51 2.77 3.29
Dec. 2015 2.54 2.51 2.65 3.28
Jan. 2016 2.55 2.48 2.64 3.26
Feb. 2016 2.50 2.39 2.63 3.24
Mar. 2016 2.48 2.23 2.61 3.22
Apr. 2016 2.40 2.22 2.59 3.20
May 2016 2.37 2.27 2.51 3.18
Jue 2016 2.38 2.26 2.47 3.16
July 2016 2.38 2.26 2.46 3.12
Aug. 2016 2.35 2.32 2.46 3.10
Sep. 2016 2.36 2.32 2.45 3.07
Oct. 2016 2.38 2.46 2.44 3.03
Nov. 2016 2.43 2.56 2.45 2.99
Dec. 2016 2.44 2.70 2.45 2.96
Jan. 2017 2.47 2.77 2.53 2.95
Feb 2017 2.49 2.76 2.53 2.94
Mar. 2017 2.52 2.70 2.53 2.93
Apr.2017 2.52 2.64 2.53 2.92
May 2017 2.51 2.48 2.52 2.9
June 2017 2.51 2.50 2.52 2.88

Increase in the interest rate margin

The interest rate margin on new and outstanding mortgages to households increased by 0.08 percentage points to 1.67 and 1.71 per cent in June. NIBOR went down by 0.08 percentage points in the same period to 0.84 per cent.

Figure 2. Interest margins on new and outstanding loans with a mortgage to households. Sample of banks and mortgage companies

Loans margin, total outstanding loans secured on dwellings Loans margin, new total loans secured on dwellings NIBOR
June 2015 1.61 1.85 1.36
July 2015 1.57 1.88 1.29
Aug. 2015 1.67 1.83 1.15
Sep. 2015 1.64 1.82 1.14
Oct. 2015 1.49 1.81 1.11
Nov. 2015 1.37 1.62 1.20
Dec. 2015 1.38 1.56 1.15
Jan. 2016 1.36 1.51 1.19
Feb. 2016 1.43 1.61 1.07
Mar. 2016 1.45 1.65 1.02
Apr. 2016 1.38 1.63 1.01
May 2016 1.38 1.58 0.99
Jue 2016 1.34 1.50 1.03
July 2016 1.31 1.45 1.07
Aug. 2016 1.26 1.42 1.09
Sep. 2016 1.19 1.33 1.17
Oct. 2016 1.27 1.37 1.12
Nov. 2016 1.28 1.34 1.16
Dec. 2016 1.27 1.30 1.19
Jan. 2017 1.45 1.52 1.04
Feb 2017 1.44 1.5 1.06
Mar. 2017 1.54 1.57 0.99
Apr. 2017 1.54 1.57 0.99
May 2017 1.59 1.63 0.92
June 2017 1.67 1.71 0.84

Low interest rate on loans to non-financial corporations

For new other repayment loans to non-financial corporations, the interest rate increased by 0.10 percentage points to 2.84 per cent in June, while the interest rate on outstanding loans fell by 0.04 percentage points to 2.98 per cent.

Low deposit rates

The interest rate on deposits from non-financial corporations fell by 0.04 percentage points to 0.63, and the interest rate on total deposits from households fell by 0.03 percentage points to 0.75.

Historically low interest rates in banks (complete census)

The quarterly interest rate statistics (complete census) show that interest rates on loans from banks and interest rates on deposits are at the lowest level for the period we have data for (from 1954), with 3.45 and 0.78 per cent respectively.

The interest rate from state lending institutions was stable at 1.83 per cent from March 2017 to June 2017. The interest rate on loans from the State Pension Fund was also stable at 2.20 per cent.

Decreased share of fixed-interest loans (complete census)

The share of fixed-interest rate loans secured on dwellings to households from banks and mortgage companies fell from March 2017 to June 2017; from 7.5 per cent to 7.3 per cent. The share of fixed-interest rates has decreased in the last seven quarters.