ANALYSIS OF MORTGAGE LENDING IN BANKS IN UKRAINE

Violetta Kharabara

Abstract


The purpose is a mortgage market that occupies one of the major places among the financial mechanisms of economic stimulation and stable development of the economy. The mortgage market occupies one of the main places of financial mechanisms and economic incentives for the sustainable economic development. Mortgage lending covers the provision of long-term bank loans for the purchase, construction of residential real estate, as well as for repairs or to develop their own small businesses, where the collateral for such loans is real estate. Distinctive features of mortgages include: mortgages, like any collateral, in fact, is a way to ensure proper implementation of the other (main) liabilities – loan or credit agreement, lease, contract, compensation, etc.; the subject of a mortgage is always real estate. Real estate includes land plots and everything that is firmly associated with them: buildings, perennial plants, etc.; mortgaged property remains in the possession of the debtor; the agreement between the creditor and the debtor on the establishment of a mortgage is formalized by a special document – the mortgage, which is also subject to state registration. The mortgage crediting is the method of accumulation of financial resources, effective instrument of bank activity, and an important factor in economic development of the country on the whole. Research results are market of the real estate and financial services development, to the revival of fund market, here the mortgage crediting is capable not only of activating reforms in industries of the economy but also gradually providing the decision of housing problems of the population. Practical consequences consist in the solution of problems that are related to the market for mortgage services of Ukraine’s development from 2006 to 2016. Value/originality. Analysis of the mortgage market in Ukraine shows that in recent years, its scope, dynamics, and trends do not meet the needs of either people or developers. At a time when the dynamics of macroeconomic indicators do not give hope for a quick exit from the crisis and high political risks increase the uncertainty of social development, long-term mortgage loans are risky for the banking sector and for borrowers. Implementation methods in combination with the continuation of market reforms in Ukraine will contribute to the economic growth and socio-economic development.

Keywords


mortgage, mortgage lending, mortgage market, loan portfolio, mortgage refinancing.

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References


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DOI: http://dx.doi.org/10.30525/2256-0742/2017-3-3-59-63

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