Average mortgage rate in December rose to 2.91 pct

16-01-2019

The average mortgage rate rose to 2.91 percent in December from 2.78 percent the previous month. According to Fincentrum Hypoindex data, mortgages have risen at the fastest rate in 10 years.

The size of an average mortgage loan grew steadily throughout 2018 to stand at nearly 2.3 million crowns in December.

The number of applicants had surged in September as people sought to get mortgages before tougher lending guidelines set by the Czech National Bank came into effect on October 1.

Under the guidelines, a borrower should not be eligible for a loan which is greater than nine times their annual net income, or need to spend over 45 percent of their monthly net income to service the debt.