Not only the borrowers who have already repaid their loans, but also people who are just applying for such a loan, are experiencing a decline in Vibor. A lower interest rate means a lower installment, which means a higher loan amount. January is another month in which the creditworthiness of Poles increases.
And it will be even better
After the entry into force of Loan and Credit of the Polish Financial Supervision Authority, creditworthiness may increase by about 6-8 percent.
The beginning of the previous year began with a sharp decline in creditworthiness. However, in subsequent months, and in particular in the last quarter of 2012, the possibilities of obtaining a loan increased. Also this year did not bring a reversal of the upward trend in this respect.
Available amounts, as in previous months, also increased. A single person earning an income of 7000 net per month, assuming 20% own contribution, can take out an average loan of almost 664 thousand. This is an amount by almost 3 percent compared to December 2012. Families’ creditworthiness also increased, but it was a much smaller change. A family of 4, with a total income of 5000 net, could apply for a loan of 362,000.
This is an amount higher than that in December by only PLN 4,000
The decrease in the Wibor reference rate is primarily responsible for current increases in creditworthiness. The NBP interest rate cuts translated into a lower level of this rate, which in turn resulted in a reduction in interest rates and installments and, as a consequence, an increase in creditworthiness in both analyzed cases.
- single – net income of PLN 7,000, no liabilities, 20% own contribution, loan for 25 years,
- family – marriage with 2 children, net income of 5,000 PLN, no obligations, no own contribution, loan for 25 years.
Source: Good Finance Credit House
The following months
Should also bring further increases in creditworthiness. This will be supported by subsequent, announced interest rate cuts, which should result in lower total interest rates. However, the most important change will be brought by the new Loan and Credit.
According to the recommendations of the Polish Financial Supervision Authority, banks will not be forced to calculate their creditworthiness for a maximum loan term of 25 years, but they will be able to extend this deadline by 5 years.
According to our calculations, this should increase creditworthiness by about 6-8 percent. This means that the single from the example above will be able to take a loan of about 45,000 and the family by PLN 25,000.