Mortgage lending keeps growing

As of September 1, 2014, the remaining mortgage balance on RMLs at Rb 3,2 trillion was higher 33.44% than the outstanding debt observed as of September 1, 2013. There was a persisting positive downtrend in the overdue debt on RMLs in rubles in the remaining mortgage balance (0.87% as of September 1, 2014) and growth in volume and share of outstanding debt on RMLs without delinquent payments (95.59% as of September 1, 2014) in total outstanding debt.

The average weighted monthly rate on RMLs in rubles advanced 0.05 p.p. to 12.27% in August 2014 compared to 12.2% as of June 1, 2014. As of September 1, 2014, according to the data provided by the Central Bank of Russia, 650570 residential loans (RLs) were issued at Rb 1104,05bn, including 619026 mortgage residential loans (RMLs) at Rb 1070,34bn, exceeding by 27.47% quantitatively and 36.33% in value the volume of loans extended as of September 1, 2013. In August 2014, the remaining mortgage balance on RLs increased 2.11% to Rb 3,32 trillion, while the same on RMLs gained 2.12% to Rb 3,2 trillion. The latter was 33.44% higher than the debt on RMLs as of September 1, 2013. As of September 1, 2014, overdue debt on RLs amounted to Rb 45,01bn while the same on RMLs to Rb 41,78bn.

According to the data provided by the Central Bank of Russia, the debt on RMLs with payments delinquent for more than 180 days (defaulted loans) amounted to Rb 54,06bn as of September 1, 2014, or 1.69% of the total outstanding debt, down 0.38 p.p. compared to the value observed in September 1, 2013 and 0.03 p.p. against the value as of August 1, 2014. In August 2014, outstanding debt on RMLs without delinquent payments increased to Rb 3,06 trillion, gaining 0.12 p.p. to 95.59% of the total outstanding debt (see Fig. 2). Overdue debt on RMLs in August 2014 increased (see Fig. 1) 0.52% in value, down by 0.02 p.p. to 1.31% of the remaining mortgage balance.

G. Zasonskiy, researcher