Experts explained the artificial inflating of mortgage rates by banks

Such practices as artificially inflated rates and changes in lending terms are becoming more and more common, said Maxim Kolyadov, head of retail banking at insurance broker AMsec24. He told Izvestia that this is due to the increasing cost of raising funds for banks and the instability of the economic situation.

Earlier in the day it was reported that banks began to artificially inflate rates when issuing mortgages. There are cases when financial institutions give an additional part of the loan to the preferential program at an extremely high interest rate, for example, at 100%. This "Izvestia" told "Izvestia" Deputy Finance Minister Ivan Chebeskov. Credit organizations also began to include additional fees or increase the down payment. Thus they increase the marginality of the mortgage.

"Financial institutions seek to minimize their risks, and in this context they can use various mechanisms to limit the issuance of loans," said Kolyadov.

According to him, banks have the right to set their own lending conditions within the framework of the legislation. However, if the program has clear instructions on the down payment or other conditions, then changing these conditions may be considered as a violation. He also emphasized that it is important to take into account: many banks operate within their internal regulations, which may not always meet the expectations of customers.

"The main risks are that such practices may lead to a decrease in the availability of housing for citizens, increase the debt burden on borrowers and ultimately worsen the financial stability of the population. This may also cause negative consequences for the real estate market as a whole," the expert explained.

He also clarified that with a combined mortgage, the borrower can take a part of the amount under the preferential program, and the rest - at the market rate. This allows you to get the necessary amount, but at the same time part of the loan will be burdened with higher interest. Usually the part under the preferential program has fixed terms, while the market part can vary, Kolyadov added.

"When banks will stop inflating rates and slowing down mortgage issuance, it's hard to say. It depends on many factors, including the economic situation, actions of the Central Bank and government support measures. Perhaps, the situation will begin to stabilize in a few months," - suggested the expert.

At the same time, VTB's press service told Izvestia that the tightening of government programs, the Central Bank's plans to keep the key rate high for a long time and to "cool" the consumer loan market made it more reasonable for mortgage market players to work on the quality of the portfolio, rather than on building it up.

"According to our assessment, next year we expect a decline in mortgage sales in the whole system by at least 20% more," - concluded in the credit organization.

Earlier, on October 29, it was reported that the issuance of mortgages by the end of 2024 will decline by more than a third. This follows from the forecast "Dom.RF". On preferential programs the fall will be slightly less - 26%. In 2025, a more significant decline is predicted - twice as much as in 2023.