The cost of mortgages for the citizens of Russia in the current year will inevitably increase due to the crisis in international financial markets and the growth rates in loans to banks, according to analysts polled by RIA Novosti. U.S. mortgage crisis that erupted in August last year, has led to serious financial problems in the world. Many major international banks and investment companies have suffered significant financial losses, in particular, because of unsuccessful investments in mortgage-backed securities. These institutions have begun to reconsider their investment strategy, withdraw funds from riskier assets, including developing countries, to minimize the amount of new investment. The international market for corporate securities such as Eurobonds and bonds issued in securitizations, was closed for most issuers. Many Russian banks and companies are having difficulty refinancing. Hardest hit by the federal and Moscow banks middle managers, whose main part was planned to create liabilities due to foreign loans. Get these loans, they were either in principle, impossible, or their price is significantly different from that proposed. Could raise funds only by large state-owned banks (Sberbank, VTB, Gazprombank), or banks with foreign participation, and those whose parent companies have not experienced difficulties with the money. With the increasing cost of money and the difficulty in obtaining them, "a number of banks tightened requirements on borrowers or increased mortgage rates, and some even abandoned this product," recalls director of retail banking products, "Absolut Bank" Emil Yusupov. In fact, in mid-August 2007 Moscommertsbank - one of the biggest players in the mortgage market, announced an increase in rates, the bank "VTB 24" tightened lending conditions, and the "Russian Standard" does stop the provision of housing loans. "The crisis has affected and continues to exert a strong influence. The volume of loans as long as decreased slightly, but if the crisis deepened, they may decline further in conjunction with the tightening of credit conditions. All these effects a simple fact - the cost of raising banks' resource base has increased seriously enough," - said RIA Novosti first deputy chairman of City Mortgage Bank Ruslan Iseev. According to analysts expect the downward trend in mortgage rates over the next two years is not worth it. "For the first time since the introduction of mortgages in Russia bets on it did not go down and up," - said Yusupov. He added that this year will not come true predictions about reducing the cost of housing loans that were made prior to the crisis in the U.S.. "Most likely, however, we expect a slight increase in mortgage rates," - he said, without specifying how much can grow interest on these loans. Opinion that the cost of home loans will rise slightly, stick to most experts. "Higher prices for mortgages is likely to be small" - suggested the head of the block, "Mortgages" Alfa Bank Ilya Zebari. According to him, is expected to increase rates by 0.5-1 percentage points. In addition to increasing the value of mortgage loans, and analysts predict a tightening of the other conditions for granting such loans. First of all, this is due to the fact that banks tend to minimize the risks and possible losses in a difficult situation and so the liquidity and refinancing. According to a representative of City Mortgage Bank, may be tightened lending options such as early repayment terms, the ratio of the value of collateral to loan size, credit ratings (that is, the criteria by which the client belongs to a category of risk, namely the length of service at last place, position, availability of real estate in the property, the amount of average salary over the last few months, etc.). "The main result of (international finkrizisa), in my opinion, was the return of Russian banks to understand the importance of a thorough evaluation of each potential borrower's solvency and the adequacy of the collateral," - said Iseev. Whereas before, in his opinion, the banks paid more attention to increase the volume of their loan portfolios, they are now more baked their proper quality. "The lack of a balanced approach to the evaluation of these two" pillars "of the mortgage could lead to difficulties in refinancing the portfolio," - he added. There are optimists who see closer monitoring of banks for borrowers positive side to the clients themselves. "I would say that conditions are being tightened, and reduced to reasonable rates that allow banks to control their risks, while maintaining an acceptable level of profitability" - suggested the vice president of business development bank "DeltaCredit" Dinara Yunusov. "The crisis has not such a strong influence on the Russian mortgage market as a whole, in addition, this effect can not be called negative," - said the representative of Alfa Bank. He added that "this situation can be predicted increase healthy competition, and thus the quality of loans from all Russian banks, which benefits both customers and by market players, such as portfolios easier to refinance." "Now, much has been done to improve (and in fact created) infrastructure of the domestic market of mortgage-backed securities - and the effective functioning of the market is a prerequisite for the successful ramp up mortgage lending and thus increase the attractiveness of these loans for the consumer," - said Iseev. RIA Novosti analysts polled also gave a brief predictions about how it would change the mortgage market in Russia in the next year or two. "I think the market growth will be lower compared with 2007, but still strong enough (35-50 percent). As far as interest rates change - depends on the state of financial markets, both foreign and domestic" - said the representative of City Mortgage the bank. "The development of the mortgage market will be mainly due to the regions - the city of the" second tier "- suggested an expert from the Alfa-Bank. According to him, 80 percent of credits will be issued in rubles, and the most popular term is 15 years. The most positive outlook a specialist from the bank "DeltaCredit." "The main trend that would like to emphasize - this is the rapid growth of the Russian mortgage market, which is quite natural, given that he is now at the very beginning of its development", - said Yunusov, adding that mortgage today experiencing a "golden age". Vice-President of the bank explained by the fact that on the one hand, the country has a huge unmet demand for better housing, with another change in the mentality of Russians: more and more people are strengthened in the knowledge that their own homes, even if purchased with the loan - it is profitable. "The demand, underpinned by rising incomes, creates supply, so I have no doubt that the Russian mortgage term future," - she concluded. Several banks in 2008 have already changed the terms of their mortgage programs, and someone announced his intention to do so. So, just recently - in early February, the bank "VTB 24" raised rates on mortgage loans in rubles and foreign currencies by an average of 0.5 percentage points. The bank also raised the maximum term of such loans to 50 years. The decision to adjust interest rates in the bank explained the situation on the international capital markets and the increased cost of funds. In early 2008, Alfa-Bank raised interest rates on housing loans to all programs, on average by 0.5-1 percentage points. The bank "DeltaCredit" in February, reduced the cost of mortgages in dollars by 0.5 percent. The head of Sberbank German Gref said in mid-February that the bank is currently discussing how to adjust interest rates on deposits and loans. At the same time Gref did not elaborate on exactly what kinds of loans and deposits rates will be changed and how much.
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