Czech mortgage lending rises in September as interest rates increase

Czech banks and building societies provided mortgages worth CZK 35.4 billion in September, up three percent from August but down six percent year on year, according to the Czech Banking Association’s Hypomonitor. New lending excluding refinancing rose five percent month on month to CZK 28 billion. The average interest rate on new mortgages increased to 5.1 percent from five percent in August, having reached a recent low of 4.43 percent in March. Lenders issued 5,995 new mortgages, nearly three percent more than in August but 12 percent fewer than a year earlier. High property prices and borrowing costs continue to constrain demand.