Banks are increasing its price again

Since September 1, a number of banks - major players in the mortgage lending market have increased lending rates. They explained their actions by unfavorable market conditions. However, experts believe that the reason for the massive increase in rates by major players is the reluctance to lose income against the backdrop of a forced massive increase in rates by partner banks of the Agency for Housing Mortgage Lending (AHML).

From September 1, VTB 24 Bank increased rates on all types of mortgage loans by 0.5% to 12.2-14.95% per annum. At the same time, Absolut Bank raised mortgage rates. On average, for all products the increase was 0.5-1.5% to 11.5-13% per annum for ruble mortgages and 10-12% for mortgage loans in foreign currency. Rosevrobank and the First Czech-Russian Bank also announced an increase in mortgage rates, and Alfa Bank increased the cost of mortgage loans from August 20. Thus, borrowers faced the second wave of increases in mortgage rates since the beginning of the year. The last time banks massively increased the cost of real estate loans was in the spring of this year.

Despite the consolidated actions of bankers to raise rates, they do not give clear official explanations for this, citing only general reasons. “The projected inflation rate by the end of the year is 12.5%, the bank cannot afford to work at rates below this level,” explained the increase, the director of the mortgage lending department of VTB 24, Anatoly Pechatnikov. “After the increase, the yield on the bank’s mortgage portfolio will be 13.5% , otherwise the product would become unprofitable." According to Oleg Skvortsov, deputy chairman of the board of Absolut Bank, his bank is raising rates, focusing on the general market trend. “We have the opportunity for profitable funding at the expense of our foreign shareholders and there is no strict need to increase rates, but we do not intend to dump,” said Mr. Skvortsov. Transcreditbank adheres to a similar position. “If rates in the market as a whole rise, we will not lag behind and will also raise rates,” Andrey Kuptsov, vice-president of Transcreditbank, told Kommersant.

However, unfavorable market conditions are not the only reason for the largest players to increase mortgage rates, experts say. In their opinion, one of the main factors that determined the increase in mortgage rates was the decision of the largest refinancing organization on the Russian mortgage market - AHML - to increase rates from September 15 (see Kommersant on August 14). “In fact, AHML dictates market changes; there is a wide range of small players who will be forced to raise rates after the introduction of new standards,” says senior analyst at Alfa Bank Natalya Orlova. “Based on this information, rates are raised by large players who have the capabilities of their own funding and the overall portfolio situation is better." Large banks with state participation or foreign capital, which do not experience serious problems with funding, but are commercial players, do not want to be below the market, preferring to raise rates, thereby increasing the margin, agrees Sergei Bessonov, deputy chairman of the board of Uniastrum Bank.

An increase in rates by several large players at once can hardly be regarded as a cartel agreement, however, experts do not rule out that this situation will be of interest to the Federal Antimonopoly Service (FAS), especially if the massive increase in rates continues to gain momentum. The Federal Antimonopoly Service told Kommersant that there are no grounds for the regulator to intervene yet. “However, if a case of abuse of a dominant position in the market is revealed, we will take appropriate measures,” said Deputy Head of the FAS Andrei Kashevarov. He recalled that in the federal financial markets a ban on abuse of dominant position is established for players whose share is at least 10%.

Elena Kommersant-Pashutinskaya, Svetlana Kommersant-Dementieva

Mortgages started to grow