Return of 100-percent mortgages could revive the property market

Some banks are considering returning to providing 100-percent mortgages. Providing these again may help to revive the property market. “If banks enable 100-percent financing of property, I expect the interest in buying property will increase by approximately 10 %,“ said Daniela Rážová from Bond Reality. VÚB bank will return to 100-percent financing from March 2010. Slovenská sporiteľňa offers loans for over 70 % of the mortgaged property value as standard. Tatra banka currently does not offer mortgages for 100 % of the property value, however, they do not rule out the possibility of returning to this model.