Thai banks see modest rise in mortgage loans

[webfact]

 

In the first six months of this year, a modest increase in mortgage loans was recorded by banks as purchasing power of homebuyers took a hit due to ascending interest rates.

 

Collectively, eight out of the ten SET-listed banks reported consolidated outstanding mortgages tallying 2.39 trillion baht as of June, marking a 1.04% rise from 2.37 trillion baht in December 2022.

 

Among the five largest lenders in the country, Siam Commercial Bank (SCB) registered the most substantial growth rate of mortgage loan products at 2.69%. In stark contrast, the Bank of Ayudhya, marketed under the name Krungsri, reported a contraction of its mortgage loan products by 2.73% in the same timeframe.

On the other hand, Land and Houses Bank (LH Bank) notched the highest mortgage loan growth rate during this particular period at 16.7%, with Kiatnakin Phatra Bank (KKP) coming in second at 7.12%.

Banks usually assign a floating rate to mortgage loans during the fourth year of loan maturity, which means borrowers of these loan products could potentially be grappling with escalating interest rates.

 

by Alex Morgan

Photo by Towfiqu barbhuiya on Unsplash

 

Full story: https://thethaiger.com/news/business/thai-banks-see-modest-rise-in-mortgage-loans

 

-- © Copyright Thaiger 2023-07-29

 

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[proton]

Could do with a rise in interest rates, savers are being scalped!

[BritManToo]

2 hours ago, webfact said:

Banks usually assign a floating rate to mortgage loans during the fourth year of loan maturity, which means borrowers of these loan products could potentially be grappling with escalating interest rates.

SCB charge me 5.8% at the moment.

[RichardColeman]

6 hours ago, webfact said:

On the other hand, Land and Houses Bank (LH Bank) notched the highest mortgage loan growth rate during this particular period at 16.7%,

Think this bank may well go bankrupt issuing so many loans in recession times