OREANDA-NEWS The Central Bank allowed an increase in risk factors for mortgage loans with a low down payment. More than 40% of such loans are issued with an initial contribution of less than 20%, the Bank noted.

The Bank of Russia may in the future increase the risk factor on mortgage loans with a low down payment, said the Director of the financial stability Department of the Central Bank Elizabeth Danilova at the forum Of the Association of banks of Russia.

"It is very important to maintain lending standards and avoid excessive risks. Hung coefficients-150% - accepted for loans with an initial contribution of 10-20% from January, 1. The share of such loans has been growing and stabilized at a high level in recent quarters. If this troubling trend continues, perhaps Jan should continue to increase rates up to 200 per cent," she said. According to her, more than 40% of mortgage loans are issued with an initial contribution of less than 20%.

Since January 1, mortgage loans with a down payment of 10-20% are weighed with a risk factor of 150%, less than 10% - 200%.

Danilova also said that the Bank of Russia has investigated the use of large unsecured loans for the down payment on the mortgage. "The share of mortgage borrowers who, presumably, could use such a loan for a down payment is low, it is at the level of 3%. And we will carefully monitor it, " she added.

The mortgage market is growing rapidly, said Elizabeth Danilova. At the same time, it is necessary to maintain lending standards at a high level and avoid excessive risks. 

Earlier in July, the Central Bank increased risk ratios for consumer loans issued after September 1, 2018. For loans with the full cost of credit (FCC)   in 10-15% risk ratio increased to 130%, for FCC in 15-20% - up to 150%, for FCC in 20-25% - up to 180%, for loans with FCC in 25-30% - up to 200%.