“Sberbank” and “VTB” announced an increase in mortgage rates

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“Sberbank” and “VTB” announced an increase in mortgage rates. In principle, interest rates could rise by 1.0-1.5 percentage points. Thus, interest rates for different types of mortgage loans, which at present 9-10% per annum, may rise to 10-12%.
The reason for the growth rates in the banks, of course, was the increase in the key rate of the Central Bank of the Russian Federation to 7.75%, and December’s increase is clearly not the last, especially if to consider that inflation for 2018 has exceeded all official forecasts, rising to 4.3%. Thus, it can be expected that interest rates on loans, including mortgages, will continue to grow.
The growth rates on loans will also affect businesses, and population. According to the poll, 57% of the population has an outstanding balance for Bank loans. According to the cited media expert estimates, almost every second adult citizen has the loans at least before the two lending institutions including commercial banks and MFIs.
Given the fact that the population is heavily leveraged, the increase in interest rates will affect almost everyone, and the increase in mortgage rates will hit primarily the middle class. It is unclear what will happen with the program of mortgage with state support, designed for young families: perhaps a favorable interest rate also will rise, but probably at a slower rate than it will increase rates on commercial mortgages.
Natalia Milchakova,
Deputy Director of information-analytical center,