OREANDA-NEWS. August 09, 2010. According to observations made by DnB NORD Banka mortgage loan market has perked up, which is clearly evidenced by the surge of interest among the general population as well as by the volume of disbursed loans. Over the last few months DnB NORD Banka has disbursed more that 100 mortgage loans per month, reported the press-centre of DnB NORD Banka.

Mortgage loans currently are mostly demanded by people aged 25 to 35 in order to acquire standard apartments in various neighborhoods of Riga, their space being up to 60 square meters. Disbursed mortgage loans average to EUR 35 thousand, whereas the price of the acquired dwelling mostly ranges between EUR 40 to 45 thousand.

"People have comprehended that the nadir of the real estate prices has passed and currently prices have leveled off. Decrease in the real estate value also can be hardly expected in the nearest future, and therefore mortgage loans mostly are taken by people who really are in need of dwelling and are confident enough with their employment to assume such liability," says the Head of Lending Support Unit of DnB NORD Banka Kaspars Anckalnins.

According to information summarized by DnB NORD Banka loans are taken also for construction purpose, which means that people want either to complete the construction works already in progress or take advantage of the current cheap construction costs in order to launch new building projects.

Loans for renovation purpose are taken infrequently, the possible reasons being that the people tend to save the money for reconstruction works from their monthly income or have decided to put them off for some time.