Luminor: We have become more flexible regarding property lending in the regions
In the first half of this year, Luminor has issued housing loans in Latvia, Lithuania and Estonia in the amount of 438.2 million euros, which is one and a half times more than a year earlier – in the first half of 2020, when 171.7 million euros were issued to households in the Baltics for the purchase of housing. In Latvia, in the first six months of this year, the volume of housing loans issued to Luminor customers increased almost three times compared to the corresponding period last year – if in the first half of 2020 they were 37.3 million euros, then this year they are 102.6 million euros. On the other hand, in the second quarter, Luminor’s clients in Latvia borrowed 10% more than in the first three months of this year. “During the first wave of the pandemic last spring, we observed caution regarding real estate transactions in all Baltic countries. On the other hand, last June the market became more active, and already in autumn the volume of mortgage lending reached a record high level. According to our data, this year’s mortgage loan records in Latvia and Estonia were registered in March , but in Lithuania – in May. The average amount that Luminor customers borrow for the purchase of a home is 100 thousand euros, including the down payment,” informs Kaspars Lukačovs, head of Luminor housing lending in the Baltics. Customers are actively interested in financing options for various properties, and this year Luminor has already provided advice on home loans to more than 35,000 residents of the Baltic States. The greatest interest is in the purchase of apartments in new projects, followed by serial apartments. Most often, customers want to buy a two-room or three-room apartment in Riga with an area of 50 to 65 square meters. The pandemic and working from home have also boosted interest in real estate in the regions, so many are considering buying a summer house or country house outside the capital. “We have taken these trends into account and have become more flexible with regard to property lending in the regions. We also provide many loans for the realization of ideas – for home renovation, purchase of rural property or summer cottages, which are secured by property already owned by the client, which gives residents wider opportunities to choose non-standard real estate property. For example, it can buy an older summer house, the liquidity of which would be insufficient to receive a housing loan,” says K. Lukačovs.
Read the full article here
