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Fundamenta-Lakáskassza suspends bridging loans for early FX mortgage repayment

Hungary's Fundamenta-Lakáskassza has stopped accepting new applications for forint bridging loans to repay foreign currency-denominated mortgages with effect from October 19 because of overwhelming demand, the home savings bank said on Thursday.

Demand for loans has been 5-6 times higher in the past four weeks, generating 4-5 months of extra work for bank staff, the bank said. Demand created by a government scheme allowing full early repayment of forex mortgages at a discounted exchange rate was earlier expected to raise Fundamenta-Lakáskassza’s outlays by HUF 30bn-32bn over the target, but now outlays are seen climbing by HUF 40-45bn, it added.

The suspension does not affect clients whose applications for bridging loans are already under review, the bank said when asked by MTI.

The suspension also does not affect regular home loans.