The Bulgarian National Bank (BNB) imposes additional restrictions on the granting of mortgage loans to households.
Commercial banks will finance no more than 85% of the value of the home and monthly repayments will be up to 50% of the borrower's monthly income. The central bank also imposes a maximum limit of 30 years on the loan term.
The new requirements will apply from 1 October this year, BNB said. The measures are the next step in the regulator's policy of assessing risks in lending, noting a continued acceleration in lending in the second quarter of the year. The measures will take effect from October.
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