Home loan outlays fell in November

Sustainability

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Hungarian banks signed contracts for HUF 73.44 billion of new home loans in November 2019, 9% less than in October but 1% more than in the same month a year earlier, data released by the National Bank of Hungary (MNB) shows, Hungarian news agency MTI reports.

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Monthly home loan outlays reached a multi-year high in May 2019 and although the outlay level in November was lower, it was still significantly higher than the HUF 62.1 bln in January, which was the low point in 2019.

The share of home loans with over one initial year of interest rate fixation was at 98% in November, compared to a 94pc rate a year earlier. MNB has been making a concerted effort to push consumers towards fixed-rate mortgage loans instead of variable-rate ones.

The average annual percentage rate of charge on home loans stood at 4.51% in November, down from 4.59% in October and down from 5.31% in November 2018. The annualized rate on home loans was 4.24% in November.

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