Bulgarina National Bank tightens mortgage lending rules

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.