Polands chief finance regulator plans to limit foreign exchange mortgage loans.

This could lead to UK and other European investors (Irish) being discouraged from this region which has seen very good growth in recent years.

Polands mortgage regulator had expressed concerns that the increase in foreign exhange loans could have a knock on affect on the Polish banking systems. The mortgage deals at online lender www.EuropeanMortgages.com confirm that this trend is occuring.

Currently 60% of houseloans in Poland are in a foreign currency, either Swiss Francs or Euros, which proved a cheaper option to the Polish Zloty, mainly due to the rate differential Zloty at 6.5%, Euro at 2.75%.

The Polish regulator has looked for self control or self regulation within the market and announced in February that if it cannot be controlled then Swiss Franc lending would be banned! At the moment the Polish housing market is booming, due to the external interest, it is up 40% on last year and on the whole this is because of the foreign exchange market.

 

 

A spokesman at www.OverseasPropertyOnline.com has confirmed that the actions of the regulator would very much dampen the current popularity of Poland with external purchasers if this was to occur, however felt that there would be a natural slowdown or burnout of the market as has happened in most developing countries in time.