OREANDA-NEWS  The share of mortgages for a period of more than 25 years in the second half of 2023 increased in Russia by 10 percentage points year-on-year to 57%, the Central Bank of the Russian Federation reports, citing data from the Credit History Bureau (BCI).

"The term of mortgage loans continues to grow: in the second half of 2023, the share of loans with a term of more than 25 years increased to 57% (+10 percentage points per year)," the Central Bank's information and analytical material says. At the same time, 15% of mortgage loans were issued for a period of more than 30 years, the regulator notes.

The age of the borrower at the time of loan repayment is also increasing: 42% of the mortgage issued in the second half of the year will be repaid when the borrower turns over 65 years old. Over the year, this share increased by 11 percentage points.

According to the BCI, the share of mortgages where borrowers could make an initial payment at the expense of a consumer loan remains moderate - 6.3%, as it was a year earlier.

It is noted that the number of citizens with at least one more consumer loan in addition to mortgages is growing. In 2023, their number increased by 1.1 million people and by January 1, 2024, exceeded 6 million people. In order to limit the risks of debt burden in mortgages, the Bank of Russia has increased macroprudential allowances since March 1, 2024.

At the same time, macroprudential limits work effectively in unsecured consumer lending. The number of borrowers on cash loans stopped growing and stabilized at the level of 24 million people. The average loan size has also decreased.

At the same time, more and more citizens use credit cards - their number increased by 6.6 million people in 2023 and exceeded 27 million people. "For the first time, there are more credit card users than those with a cash loan," the regulator notes. The Bank of Russia expects that limits and allowances will gradually limit the risks of excessive debt burden of citizens.