“We will most likely see the first rate hikes for new loans – for customers who are yet to take out loans – in the fall. It will be a slightly longer process for already drawn loans, which will probably start in about a year or a year and a half.”
Credit consultant Tihomir Toshev explained this in an interview with the Bulgarian National Radio.
“First, we need to see how the banks will offer interest on deposits”, he specified.
“The jump in interest rates in different countries is different, in the USA it is one of the most serious jumps in mortgage interest rates – in only about a year and a half from 3.5% to 6.5%, in Romania and Hungary mortgage interest rates are also are already over 6%”, noted Toshev.
“It is very likely that next year we will see mortgage interest rates above 4%. This will be an individual policy of each bank.”
“Due to inflation and the expected increase in interest rates, some or all of the loans are already being cleared with part of the deposits – people who have savings are repaying the deposits with them”, commented the expert.
Tihomir Toshev advises to always “have some money at our disposal“, and those who have loans should have three to six monthly installments set aside.
“Because if the worst forecasts of a recession come true, some are already talking about a depression, for a long time a difficult market, it is good to have an option, if for some period we are without income, to cover at least 3 to 6 months of our contributions.”
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