2015-05-28
Last year approximately a tenth of households with loans were late to pay tranches for 60 days and above, mostly — borrowers of consumer loans. This data is published in the Bank of Lithuania’s Survey of the Financial Situation of Households with Loans.
In 2014, out of all borrowers of consumer loans, the share of those who were late to pay tranches accounted for 14.8 per cent, an increase of 1.2 p.p. from the year before last. About 10.5 per cent of households were late in meeting their leasing liabilities (in 2013 — 11%). The repayment of mortgage loans, which are mainly designated for the acquisition of real estate, has improved: at the end of 2014, 6.9 per cent, in 2013 — 7.4 per cent of households with such loans were late to repay them.
“Data shows that residents appreciate their housing and try to repay related credits first of all. However, one should bear in mind that long-term default in meeting any liabilities results in a negative record in the person’s credit history, which hinders substantially the possibilities to borrow in the future,” says Vaidotas Šumskis, an economist of the Macroprudential Analysis Division of the Financial Stability Department at the Bank of Lithuania.
The repayment of a total of 10 per cent of loans was overdue, a decrease of 0.4 p.p. from the year before the last year. The amount that households were late to repay was EUR 0.3 billion.
At the end of 2014, the total number of loans extended to households was 854.5 thousand, with their value standing at LTL 6.6 billion. Compared to 2013, the number of loans decreased by 9 per cent. The largest amount was of mortgage loans — EUR 6.0 billion, an increase of EUR 0.1 billion year on year.
Over 2014 households were extended 213.1 thousand new loans. Almost two thirds of them (136.7 thousand) were consumer loans.
The number of mortgage loans extended was 17.4 thousand, a year-on-year increase of 2.1 thousand. In 2014, the average weighted period of repayment for new mortgage loans extended was 24 years and 1 month, while the average ratio of the value of new loans to the value of assets pledged was 75.6 per cent. Households with a mortgage loan last year spared 34.0 per cent of income to meet their liabilities.
Total household expenditure on loan repayment (repayment of a loan tranche and interest) in 2014 amounted to EUR 1.4 billion. A year ago, household expenditure on loan repayment was less by EUR 32 million. One household in debt had to spare EUR 223 on average for the discharge of its debt liabilities per month, while a year ago — EUR 5 less.
By the average age of adult members of a household, in 2014 the households within the group aged 30–39 were most in debt. Such households accounted for 32.3 per cent of a total of household loans, with their value making up half the value of total loans. These households were mostly with mortgage loans: 32.8 per cent of their total loans, or 47.1 per cent of a total of mortgage loans.