1/3 of Bulgarians with Housing Credit do not Know how their Interest is Formed

Business » FINANCE | October 26, 2017, Thursday // 12:12
Bulgaria: 1/3 of Bulgarians with Housing Credit do not Know how their Interest is Formed Source: Pixabay

32% of Bulgarians who pay a mortgage loan do not know how their interest is formed, reports Mediapool. 

However, another third of people have a clear idea and indicate that their interest is based on a market index and a mark-up. This is clear from a survey of the "My Money" financial portal, held in August among 1100 users.

The new formula for raising interest rates through a market index was introduced in the summer of 2014. With older loans, however, the price depends on indices set by the bank itself. 35% of people report that their interest rate is fixed, against 37%, indicating that the rate is floating.

At the same time, the market can hardly meet a fixed-rate mortgage product in the long run. 70% of respondents say they would like a fixed interest rate for the entire loan term, according to the results of the survey. In their opinion, the most important thing for people is that the interest is clear and predictable.

People continue to prefer loans in BGN, it is clear from the data.

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Tags: mortgage, loans, interest, housing credit

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