Credit Expert: It is Expected that 2019 will be Stable on the Credit Market

The expectations of the experts are 2019 to be stable on the credit market - both in terms of mortgage loans and consumer loans. This was stated by the credit consultant Tihomir Toshev, reported BNT.

Interest rates at the end of this year are between 2.95% and 3.6%, which shows a further decrease. This year, many Bulgarians have withdrawn mortgage loans, their level being the highest since 2008, Toshev noted. According to him, the world trend is to raise interest rates, but in Bulgaria the interest rate is expected to be low, and it may happen after the middle of next year.

Those wishing to buy housing are mainly in the big cities, but next year the real estate market is expected to stabilize.

''We must carefully evaluate our capabilities in such a serious step'', Toshev added. When repaying the loan, the most common formula is that the payment does not exceed 30% of the monthly income. The credit consultant added that it is unreasonable to withdraw such a loan if our income is less than BGN 1,000. With higher incomes, the debt ratio may be higher.

There is an increase in consumer credit withdrawals, with the main mistake being to withdraw credits without needing them. This is most often done when purchasing consumer equipment, furnishings or excursions. Toshev called for this to be done with money which are saved. 

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