ARTICLES

9^th January 2009 - Mortgage, Economic and Real Estate Outlook for Poland, January 2009

The worsening of the credit crisis in the latter part of 2008 affected the mortgage offer in Poland in much the same way as the rest of the world. Starting in October 2008, most banks in Poland (both home grown and foreign owned) began to severely restrict the terms of their offer to all applicants. Available Loan to Value percentages fell from above 100% and bank margins rose from in some cases under 1% to as high as 3-4%. Many banks discontinued lending in Swiss Franks (CHF). With potential financial catastrophe narrowly avoided in the West for the time being, many banks are now starting to once again open up their offers, though not to pre-crisis levels. In some ways, it could be argued, the Polish banks are back to behaving the way they did a few years back, exercising extreme caution in how much they lend and who they lend to, with the competitive gains experienced during 2004-2008 erased. more »

1^st September 2008 - A Snapshot and Outlook for Poland's Economy.

As the press seems to be telling us on a daily basis at present, the economic situation in the most prominent countries of the developed world (USA, UK, Western Europe) is deteriorating rapidly, and these countries are experiencing the inevitable hangover brought on by the heady excesses of recent years and in particular the severity of the credit crunch. How does Poland compare? Growth in the wider Euro-zone is falling, but the old communist countries of Central And Eastern Europe (of which Poland is by far the largest) are still contributing high rates of economic growth, and look set to continue to do so in coming years. However, Poland will not be immune from a wider slowdown developing in Europe, and growth rates look set to fall from current levels. The most recent raft of economic data announced by Poland’s statistical office (GUS) for July 2008 paints a largely positive picture. On almost all fronts, the Polish economy is currently in pretty good shape, particularly in comparison to its European neighbors. Inevitably though, clouds are on the horizon and they are tracking towards Poland. more »

23^rd July 2008 - The strong Polish zloty (PLN) and its effect on foreign currency mortgages in Poland

If you had taken out a foreign currency mortgage in Poland in the past few years, you are currently laughing all the way to the bank (so to speak) when it comes to your repayments. Although most of the interest rates in foreign currency mortgages have risen (as have PLN interest rates), the concurrent strength of the Polish zloty has more than compensated, resulting in lower repayments in Polish zloty terms. This is because even foreign currency mortgages in Poland are actually physically paid by the borrower in Polish zloty at whatever the prevailing exchange rate happens to be. more »

21^st July 2008 - Poland's mortgage debt to GDP ratio approx 8% compared to 80% in UK and USA!

The global credit crunch has put an end to the housing booms experienced in the USA, Britain, Ireland, Spain and several other major world markets. With no more access to easy credit and new mortgage approvals at record lows, the falls in the price of housing in these markets look set to continue for some time. What effect can we see in Poland and what is the future direction of house prices in the largest CEE (Central and Eastern European) market to join the EU since 2004? more »

24^th March 2006 - Making the correct choice of Loan Currency

Considering taking out a mortgage in Poland? The biggest decision you will have to make is which currency to have the loan denominated in. Loans in Poland are offered by the banks in Polish zloty (PLN), Euros (EUR), Swiss Franks (CHF), US dollars (USD) and British pounds (GBP). Almost all Polish mortgages are of the variable rate type, so interest rates are based on prevailing interbank rates plus the addition of the bank’s profit margin (usually between 1-2%). more »