In June, a family of three could get a loan of over 7,000 PLN lower than a month earlier. The creditworthiness is decreasing, and the new Good Finance may improve, but it will be effective from the new year and not all the changes it will bring will be beneficial for borrowers.
The decline in creditworthiness in June was around two percent for the family and one percent for the single. In the case of model clients, the greatest impact was had by the decrease in average salary. According to CSO data, in May (the value for this month was used for calculations) it decreased by over PLN 130 in relation to the previous month and amounted to PLN 3,699.67 gross.
The interest rate did not have an impact on the decrease in capacity
In June, it practically did not change compared to May. The average bank’s margin for the loan sought by the family was 1.57 percent, and for the single 1.66 percent. Unlike earlier months, the decision to cut interest rates did not help either.
At the beginning of June, the Monetary Policy Council cut them by another 25 basis points. However, this change was previously discounted by the market and did not lower the base rate. At the end of June, WIBOR 3M was at 2.73 percent, which means a drop of just 0.01 percentage points during the month.
Tangible changes in the method of calculating creditworthiness should take place when banks start to adapt their internal procedures to the amendment to Good Finance published in June.
Borrowers will benefit from a 5-year extension
Of the period that banks will be able to take to calculate creditworthiness. According to previous information, banks will also be able to determine for themselves what the ratio of liabilities to income will be. Unfortunately, the remaining changes will worsen credit availability, but will not have a direct impact on creditworthiness.
From the new year, foreign currency loans will be available only to people earning in this currency, the maximum loan period will be reduced and the maximum LTV level will be reduced every year, and ultimately in 2017 it will not be possible to receive a loan without at least 20 percent of own funds. The new provisions of the recommendations are to become effective from the beginning of 2014.
After a long period of growing creditworthiness
We have been observing a slight correction for two months. The main reason for which the available amounts have so far increased was the reduction of NBP interest rates and, consequently, the decrease in WIBOR. The stabilization of the latter rate at 2.70-2.75 percent means that the amounts available to customers have stopped growing, and we are even observing a slight decrease. The ending cycle of interest rate cuts means that this factor will no longer have a positive impact on creditworthiness.
The introduction of a new Good Finance may be a facilitation in this respect. According to the adopted solutions, the creditworthiness will be calculated for a 5-year loan period. This will translate into an increase of approximately 6-8 percent in the available amounts.
The new regulations banks have to implement a maximum of January 1, 2014, but it remains to be hoped that at least some institutions will start applying the new Good Financeooner.