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Strong Swiss franc bumps up Hungarian mortgage costs by HUF 50 bln

The total value of Swiss franc-denominated mortgages in Hungary increased by HUF 50 billion in June due to exchange rate losses sustained by the forint, according to data recently published by the Hungarian National Bank (MNB). 

Without the exchange rate effects, overall borrowing of Hungarian households fell by HUF 21.9 billion, the MNB said.

Forint-denominated borrowing rose by HUF 16.9 billion, while loans denominated in foreign currencies dropped by HUF 38.8 billion.

Meanwhile, forint savings have increased and foreign currency deposits dropped, with HUF 65 billion placed into deposit compared to withdrawals of HUF 9 billion. Households saved an overall HUF 56 billion, while cost of franc-denominated loans rose by nearly the same amount.

Latest trends show that forint borrowing in Hungary is growing slowly but steadily, while interest on new forint-denominated mortgages have dropped slightly.