Radio Bulgaria

A 25-35-year-old employee of a prestigious company, who has just created a family, is the description that best fits the profile of the Bulgarian who wants to use a mortgage loan. IT experts, financiers, and doctors are those who are most eager to use the services of banks. 99% of the people who buy real estates at the moment are people who do not own an apartment or a house and need a place to raise their children, loan expert Tihomir Toshev says. Still, Bulgarians are becoming more reluctant getting mortgage loans and the main reason is the crisis and insecurity. The downward trend would continue until people feel financially secure. Mr. Toshev points out.

“Crisis makes people uncertain about the future,” Tihomir Toshev says. “Unemployment has been growing and salaries are paid with delays. This can be a huge problem when paying your mortgage installments. Insecurity is the biggest issue right now and people are actually doing the right thing at the moment, not applying for loans,” the expert adds.

In the best years of the Bulgarian economy in 2008 banks considered loans of up to 30,000 euro small ones. Today people look for much smaller loans, as they want to minimize the risk.

At the same time there are people who are attracted by the current real estate prices, which dropped 30 to 40% in the past years.

“We often advise such people to put off getting a mortgage loan for the time when they feel more secure. At the same time there are people with good incomes whose business was not greatly affected by the crisis and they see the moment as a good one for buying real estate.”

English: Alexander Markov