Baltic Journal of Economic Studies (Nov 2015)
IMPROVING THE SYSTEM OF MORTGAGE CREDITING OF RESIDENTIAL REAL ESTATE IN UKRAINE
Abstract
The purpose of the article is to improve the system of mortgage crediting of residential real estate in Ukraine. Mortgage lending appeared in Ukraine in the early XVII century, today the actual problem is a small percentage of the banking book long-term mortgage loans, because banks, on the one hand, tend to rotate without the risk of short-term funds, another potential borrower of these loans, unfortunately, is not creditworthy. However, despite the risks, this banking product is a significant factor in the redistribution and accumulation of funds, the transformation of private savings into investment resources, the problem of housing, but also contributes to the stabilization of the economy in the country as a whole. Functioning and the distribution of mortgage capital, the possible financial risks, the interaction of the mortgage market by the financial, investment and monetary Affairs, leads to a certain complexity of the mechanism of functioning of the mortgage market of Ukraine in general. The relevance of this topic not only in the development of the housing market, but also the feasibility studies for the development of this issue. We present an analysis of the institutional environment of mortgage lending residential real estate, which gave an opportunity to identify and define the environment of modern residential real estate market, its relationship with other markets. Methodology. The survey is based on institutional structure of the mortgage market that has evolved independently of other structures, independently within country under the influence of specific socio-economic environment and economic policy. Results of the survey showed that mortgage lending can be providing the borrower with some free services, such as: long-term deposit on favorable terms, notary services, insurance, discounts on bank services, providing services to the bank and the developer, given appropriate training of the borrower and so forth. Practical implications. As practice shows, most need mortgage loans young and wealthy clients. With this purpose, you need also to diversify the types of loans. Young people without significant income, applying for social housing, while the wealthy – for luxury housing and placing home in a prestigious area of the city. Value/originality. Based on this survey bank mortgage lending should apply new forms and methods of mortgage lending, as well as implement the latest technology in the field of providing banking services and lending, especially mortgages not only in Ukraine, but in other developing countries.
