June 18, 2018 / 8:24 AM / a year ago

Hungary central bank to tighten mortgage conditions as of Oct 1

BUDAPEST, June 18 (Reuters) - Hungary’s central bank will tighten mortgage conditions by curbing monthly payment-to-income limits from October, it said on Monday, expanding efforts to drive borrowers into fixed-rate loans to limit repayment risks.

The bank said that as of October 1, the monthly repayments cannot exceed 25 percent of the monthly net income of borrowers if the interest rate of their mortgages is fixed for a period shorter than five years.

Conditions have also been tightened for loans on which interest rates are fixed for 5 to 10 years. (Reporting by Gergely Szakacs and Krisztina Than)

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