The Main Problems of Mortgage Lending and Directions of Its Activation in Ukraine

Stagnation of the loan market of Ukraine actualizes issues related to the need to intensify mortgage lending. The key problems that stand in the way of actualization of mortgage lending in Ukraine are identified as follows: preservation of low level of welfare of the population; numerous and high-profile bankruptcies of participants in the primary housing market; poor quality of the previously formed loan portfolio of individuals; actual prohibition for banks to provide loans to individuals in foreign currency; formation in Ukraine of a kind of «resistance movement» against the return of mortgage loans; presence of a moratorium on the recovery of property on foreign currency loans; a complex of problems related to the legal aspects of the provision and repayment of mortgage loans; low level of institutional development of the mortgage market; presence of a number of objective difficulties and subjective factors in the implementation of the government program «Affordable Mortgage 7%». An analysis of the results of the government program «Affordable Mortgage 7%» for 2021 suggests that its key task is fulfilled only by 23%. To intensify mortgage lending in Ukraine, it is necessary: an increase in the availability of lending to individuals for the purchase of housing within the framework of the government program «Affordable Mortgage 7%»; development of additional government mortgage lending programs focused on the purchase of housing in the primary market; ensuring legislative support for judicial reform; further reduction of the share of problem loans in the loan portfolio; providing legislative support for the creation of a second level of the mortgage market, which should include the issuance and circulation of mortgage bonds, which can also be used as a tool for investing pension savings.