In spite of issued on 25th of March decrease of interest rates of about 25 basic points up to 3,75 %, conditions will not change extremely, whereas Poland differs in amount of interest rate from Great Britain with 0,5 % or Euroland countries with 1,5 %. Therefore, we can not expect sudden changes of credits’ terms in the near future.

The recession of financial market forced banks to limit granting credits. The value of foreign currency mortgages, especially those offered in Swiss Franks (CHF), drastically rose and is availaible in few banks. Many of them backed of this offer. Banks introduced also very restrictive conditions which can become stronger if the Commission of Financial Surveillance will approve planned changes affecting seriously the availability of foreign currency mortgages in our country.

Each lender of foreign currency mortgage, especially offered in Swiss Franks, is observing carefully actual movements due to one simple reason that the Swiss Frank is much more expensive than few months ago. In this connection, the value of the mortgage is much higher and the value of creditworthy property is dropping.

In the face of that situation, banks started to refine the risk because such as maelstroms involve non-payment of the loan. Thus, there is a real risk that banks will start renegotiation of credit terms, and according to estimated data, from 100,000 to 200,000 mortgage loan contracts can be subjected to verification. Therefore, we can be anxious about banks requiring of their clients some additional indemnities.

Last days, the Polbank showed these practices and demands of their clients additional loan indemnities, payment of the difference between contracted loan and actual value of the debt. In case of not fulfilling mentioned demands, clients are obliged to consent to higher margin and in consequence it appears deadlock.

The increase of the margin is nothing more than charge of customers of still rising bank costs. Officially it does not say that other banks consider maintaining these procedures, but one is relevant that verify more carefully debt repayments.

Banks are seeking for savings that amounts are not designed up to now, nevertheless these movements can provoke the loss of credit and deterioration of bank’s image.

What should we do in such as situation? Should we negotiate? Having foreign currency mortgage loan, we could obviously reject bank’s demands without risk of contract denouncement or demand of instant repayment of the loan. Notwithstanding many banks reserved the right to change of foreign currency of the loan into zloty in any moment, raising numerous doubts. Besides, if lenders intend to transfer their mortgages to another bank, it is evident that they can not count on the same credit terms.

One ought to estimate that renegotiations of credit terms result also of the effect of reckless granting of mortgage loans with low profit margin.  It is the truth that during last years it was possible to obtain bank financing for own apartment, in very easy and fast way. Nevertheless, the market situation constrained correction of these terms and no how we will not evade it….

The subject of renegotiation of mortgage loans incurred huge commotion and in general there is no good solution for all, maybe only some positives for banks. In connection with the fact that this affair became renowned, the Office of Competition and Consumer Protection undertook activities leading to verification of these practices. One should wait, bide time and believe that the situation will become stabilized soon.

Source: Property Jornal Polska Giełda Nieruchomości 04-05/09