Foreign experience of the development of mortgage lending as one of the most important economic factors in Ukraine

Abstract

The article reveals the theoretical and practical experience of adapting the foreign experience in the development of mortgage lending as one of the most important economic tasks for Ukraine. Being an integral part of the financial system, mortgage loans in world experience implies a relationship between the availability of a procedure for loan pawning applied to obtain special loans and the ratio between the actual receipt of mortgage loans. It is important to note that the mortgage system combines economic, legal and social aspects. One of the peculiarities of the Ukrainian mortgage system, which differs from the foreign one, is that the mortgage market still does not use complex instruments and is not fully integrated into the national and even global financial system.

It has been proven and theoretically justified that the mortgage lending system of some countries is significantly simplified, which makes it very profitable even for non-residents. Spain and Turkey are considered the most profitable among them, but not all banks in these countries grant loans to foreign citizens. In Spain, only a few banks offer mortgage loans to non-residents. These are Bankinter, Santander, Bankia and Caja Murcia, and in Turkey they list only three: Fortis Bank, DenizBank and Garanti Bank. In addition to the above-mentioned countries, favorable mortgage lending conditions are offered by Italy, Cyprus, the USA and France.

The study analyses the mortgages conditions in European countries, as well as mortgage products offered to potential borrowers from various countries of the world. The results reveal the differences in interest rates, customer requirements and mechanisms for deals registration. The analysis of the interest rates for obtaining a mortgage in the EU member states reveal that the lowest interest rates are in Finland at 1.47%, Luxembourg -1.8%, Sweden -1.85% and Slovakia -1.90%. The highest rates are applied in Hungary (6%), Croatia (6%) and Romania (5.5%).

It has been proven that the development of the mortgage market in Ukraine combined with the experience of other countries will contribute to the expansion of the money market and increase the banks competitiveness level. This impact can be put into practice under the establishment of the necessary infrastructure for the mortgage market. Banks will switch from consumer lending to mortgage lending.