Next year may see the establishment of a Ft 4 billion national home loan guarantee fund to assist homebuyers who cannot produce the required amount of down payment, President of the National Home and Construction Bureau Sándor Fegyverneki said. Access to the fund's guarantee would increase the interest rate on the loan by 1% and allow borrowers to receive credit up to 95% of the collateral value of the property instead of the current 60-70%. However, putting a positive credit history database in place is a prerequisite for the fund to become operational, Fegyverneki added. In other news, the National Bank of Hungary (MNB) expects a slight deterioration in the overall quality of banks' home loan portfolios this year with a decline in the average loan value to Ft 3.4 million-Ft 4.4 million. Currently, only 18% of the 4 million residential properties in Hungary are mortgaged, in comparison to 80% in the EU. (NG 1) P.P.
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26.05.2004