BIK Poland: Home loan enquiries up 92% y/y in January

Banks and SKOKs sent home loan enquiries to the Credit Information Bureau (BIK) in January for an amount 92% higher than a year earlier, the bureau reported. The number of applications increased by 70.3% y-o-y to 22,58,000, while on a monthly basis it fell by 51.3%.

The average value of a housing loan applied for was in January 2024. 426.88k and was 23.4% higher than in January 2023. However, compared to December 2023, it fell by 1.9%, BIK reported.

"There are several factors influencing the value of the current Index reading. The first is the higher number of home loan applicants, which increased from 13,25,000 in January 2023 to 22,58,000 in January 2024. The more than 70% increase in the number of applicants compared to January last year is largely the result of a 'freeze' on home loan demand at the time as a result of high interest rates, so we have the effect of last year's low base. The second is a decline of over 50% in the number of applicants in January 2024 compared to December 2023. This is a direct consequence of the closure of the acceptance of loan applications made under the 2% Secure Credit Programme, which accounted for around half of lending in the second half of 2023," said BIK Group Chief Analyst Waldemar Rogowski.

An important factor determining the level of the Index is also the increase in the average amount of credit applied for to nearly PLN 427,000 - an amount 1/4 higher than in January 2023.

"It is, however, lower than in December last year. This is already the result of applications without the Borrower Support Programme. Beneficiaries of the 2% Safe Credit Programme applied for and took out loans for a higher average amount compared to 'market' borrowers." Rogowski added.

Source: BIK and ISBnews