Postgraduate student at the Accounting Department
Simon Kuznets Kharkiv National University of Economic
MORTGAGE LOAN PRICE FORMATION TAKING INTO ACCOUNT BORROWER'S RATING
Background. The problem of housing for many years remains among the main in the society. A large proportion of the population, especially young people, does not have an own home that reflects negatively on the socio-economic indicators of the state. This problem has a solution through the development of mortgage lending in both the public and banking sectors. But bank mortgage market requires immediate reforms and formation of a specific mechanism for its improvement, which determines the relevance of the chosen topic.
Review of scientific sources in this area indicates that the large number of researches is engaged in studying mortgage lending in Ukraine. In spite of this Ukrainian mortgages lending sector is ineffective and undeveloped, therefore, further research in this area remain relevant.
The aim of the article is the developing mechanism of cheaper mortgage due to introducing the risk system assessment based on ratings.
Materials and methods. Data of global and domestic practice of mortgage loans for population to purchase their own homes, also statistic data among people in Ukraine, who want and need to improve their living conditions was used for research materials. A wide range of general and special methods of economic research, including methods of organizing, analyzing, comparing, statistical analysis and others were used in this article.
Results. In the current conditions prevailing in the country, the population, especially young citizens, is unable to buy their own homes. So, just by the State Statistics Committee data every year there are more than 100 000 people on the housing register, among them over 10 % are youth. In this case, solving this problem is possible by using its own founds or with the help of the mortgage lending, which is more common among European and American countries.
But a lot of banks think that mortgage sector is one of the most risky and unprofitable sectors lending, that’s why this sector of financial services in our country is not valid.
Conclusion. In this economic situation in our country, mortgage sector needs to be reformed and improved. As for banking sector, the main drawback in this area is the high percent rates and a large quantity of commissions and hidden fees, compulsory insurance, etc., that not only increase the coast of the loan, but also make it inaccessible to the majority of citizens of our country.
Keywords: mortgage, mortgage loans, credit terms, interest rate, system of evaluation of rating of the borrower.
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