Mortgage lending on the financial market of Ukraine

Abstract

Mortgage home lending plays an important role in the socioeconomic development of any state, first of all, because it is an effective tool for combining the financial market with the real estate market, which contributes to the capitalization of resources, and also contributes to the development of the real estate market, which contributes to the capitalization of resources, secondly, it contributes to the development of the real estate market, solving the housing problem, and maintaining social stability. Solving mortgage lending problems is the task that affects the macroeconomics of the country, social and migration policy, construction sector, development of banking products, and so on. Such goals cannot be achieved immediately, it takes a long time. However, sooner or later the country's economy will reach the level where mortgage lending will be equally beneficial to banks and the widest range of their clients. The importance of such problems determines the relevance of our research. That’s why the purpose of this study is a thorough analysis of trends in mortgage lending in Ukraine for outlining the existing problems and prospects. The results of the study showed that under the current economic situation in the country it is not possible to effectively use mortgage lending as a financial and legal mechanism for improving the housing conditions of the population. This state of affairs causes a striking decline in the activity of borrowers in this economic segment of the financial market of Ukraine. Such circumstances cause a striking decline in the activity of borrowers of this economic segment of the financial market in Ukraine. a dramatic decline in the activity in first-rate workers in the entire economic segment of the financial market of Ukraine. However, a certain part of the population resorts to the services of financial institutions to realize the possibilities of mortgage lending. Depending on the pace of economic development, there are different conditions for private initiative, which in turn determines the demand for real estate objects. The development of the real estate market provides the growth of the quality offer. Thus, the development of mortgage lending in Ukraine depends on the stage of market development, and as we know, the real estate market develops cyclically. During the research, it was found that there are quiet periods in the 382 housing market caused by economic problems or speculative statements of companies. Thus, the perspective of mortgage lending in Ukraine depends not only on the country's economic development in general but also on the desire and capabilities of domestic banks to improve mortgage lending terms. Only a combination of factors can make a mortgage affordable. Among them is the smoothing of disproportions between housing prices and the raising of the population, for which it is necessary to increase the new housing construction, raise the citizens' incomes, to slow down the growth of housing prices, along with a reasonable liberalization of requirements for potential borrowers and financial terms of lending.