The National Bank of Hungary is boosting borrowing, with little success: the 2018 plan has been largely over-implemented. However, with the elimination of government-backed home savings schemes, many have been left without self-sufficiency and savings ideas, which, despite central bank precautionary measures, can drive borrowers towards bad debt.
What’s more, the lower-income and deprived layers can be trapped in a market where overpriced real estate is multiplying.
The country of investment illiteracy
Three-quarters of current homeowners do not know where to invest their money in the future after their current contract expires. They typically have some ideas and ideas for those who have other investments besides home savings, according to a survey by the Academy of Good Finance.
“I had assumed that saving would bring about an investment approach, but it didn’t seem to be, and many were waiting to tell someone what to invest in,” said Orsolya Alkér, the founder of the survey firm. development, and there is still a very high proportion of those in society who lack basic financial knowledge.
Of course, the lack of a dream-like product on the market, such as ltp, in which regular savings are rewarded with a fixed return of up to 10 percent and deposit insurance coverage also contributes to the indecision.
We will not sew ltp $ 20,000 into a pillow case
“The home savings fund was a rare opportunity for self-fundraising and was open to lower income earners. It has also educated consumers on financial discipline, which is not negligible before taking a loan, ”said Balázs Sándorfi, Founder and CEO of Bankmonitor, in our article analyzing the 2018 housing policy changes.
But according to Sándorfi, those who set aside $ 20,000 a month for the LTP will not necessarily sew the same amount each month into the pillow case, simply because “without government support, this amount won’t go too far in years. They would rather not start saving. ”
The new ltp has built up tens of billions of forints
After the LTPs were plotted, only Fundamenta came up with a new construction, just a few days after announcing the termination of state aid. However, experts say the new product will only survive if the volume of outsourcing is high or they can somehow reduce fixed costs.
Fundamenta, on the other hand, gave a confident answer to our newspaper, saying that with the new product, their staff had built tens of billions of new staff, despite having tens of thousands of people ahead of the state subsidy. They also say they do not expect competitors to show up with similar products in the near future.
If ltp goes up, the credit will stay
“There may be an interesting situation in mortgage lending when LTP contracts – especially in October now massively concluded – will expire,” said Erika Trencsán, Bankruptcy Specialist, who has experienced two-year contracts typically two years after announcing the termination of LTPs. the customers.
LTPs have been made by many to be able to use the accumulated amount as a deduction for a future home purchase. As home savings spin up, the number of people who are forced to make up their own borrowings, or who have to cut down on their borrowings, can increase, which in turn results in a higher installment.