The initial optimism of early 2022 was abruptly dampened by the end of the year, and this has persisted throughout 2023. The sharp rise in borrowing costs coupled with a decline in disposable incomes due to high inflation has compelled Hungarians to reassess their budgets and reconsider their plans for significant expenses such as moving house, home renovation projects, and purchasing cars or other expensive durables.
All major banks offer Certified Consumer-Friendly Housing Loans, which were launched in 2017 with criteria set by the Hungarian National Bank. This initiative aims to support consumers by providing them with more affordable and transparent options for housing financing while ensuring a high standard of customer care.
Inflation, rising real estate prices and increasing APRs on mortgages have discouraged potential borrowers. To alleviate the financial burden for borrowers, some banks, including OTP, provide the option of deferred capital repayment for the first year of the mortgage.
In April 2023, MKB Bank completed its merger with Takarékbank following the acquisition of the bankrupted Sberbank portfolio and the acquisition of Budapest Bank during 2022. This significant merger resulted in the formation of Magyar Bankholding Zrt, marking a new chapter for the bank.
The consumer lending market in Hungary is currently experiencing robust demand for financing. However, high interest rates and escalating expenses associated with home renovation projects have dampened the once dynamic growth in this sector.
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Understand the latest market trends and future growth opportunities for the Consumer Lending industry in Hungary with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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Consumer Lending
Aggregate of Consumer Credit and Mortgages/Housing. Gross Lending: The total value of loans advanced by institutions in a given year; data refers to single year only. Outstanding Balance: The collective amount owed by borrowers at the end of a given year; data refers to the cumulative impact of debt.
See All of Our DefinitionsThis report originates from Passport, our Consumer Lending research and analysis database.
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