Current problems related to retail mortgages

Abstract

The purpose of this article is to present current problems related to retail mortgage loans, which seem to be the most important type in the light of the amendment to Recommendation S proposed by the Polish Financial Supervision Authority, and to show that the supervisory authority is aiming at transforming the Polish mortgage loan market while ensuring greater security for borrowers. The issue of interest rate and its impact on the cost of credit has been discussed. This became the basis for considering fixed and variable interest rates on retail mortgages and showing the situation of the Polish market in relation to European markets. Moreover, the issues related to the necessity of making one’s own contribution and its impact on the amount of credit installments have been discussed. The report additionally discusses the issue of loans with the “key for debt” option, which is a new proposal for the Polish market.