Język Polski
English
Consumer characteristics with regard to choosing between fixed and adjustable interest rates in mortgage contracts
https://doi.org/10.26354/bb.5.4.69.2017
Abstract
The main purpose of the article is to analyse the most important borrower characteristics determining preferences in the choice of the interest rate formula in mortgage contracts. Based on the PFSA statistics, the portfolio of newly-issued mortgages in 2016 was analysed to identify a group of consumers corresponding to the borrower characteristics who, in the light of European and global research, would be willing or obliged to choose a fixed interest rate.
The conducted research shows that in Poland, the scale of the fixed interest rate choice in mortgage contracts is insignificant and represents only 0.2% of total mortgage debt. The analysis allows to identify a group of Polish consumers who should be given an option to choose a fixed rate when signing a mortgage contract. The size of the target group that should get acquainted with the offer of fixed-rate mortgages varies in Poland, depending on the chosen borrower characteristics. On the basis of the research, however, it can be incurred that in about 20% of the concluded contracts, there should be an option to choose the interest rate formula.
Keywords:
fixed-rate mortgages , FRMs , adjustable-rate mortgages , ARMs , consumer preferencesDownload files
Citation rules
Licence
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Most read articles by the same author(s)
- Leszek Pawłowicz, Marta Penczar, Macroeconomic Challenges and Forecasts for Poland (Expert Opinion of the European Financial Congress) , Safe Bank: Vol. 73 No. 4 (2018)
- Leszek Pawłowicz, Marta Penczar, Teresa Bednarczyk, EKF macroeconomic consensus: forecasts, threats, opportunities and recommendations , Safe Bank: Vol. 77 No. 4 (2019)
- Ludwik Kotecki, Leszek Pawłowicz, Marta Penczar, Macroeconomic challenges and forecasts for Poland according to experts of the European Financial Congress , Safe Bank: Vol. 79 No. 2 (2020)
- Marta Penczar, Assumptions and implications resulting from CCD2 for the consumer credit market in Poland , Safe Bank: Vol. 93 No. 4 (2023)
- Marcin Mrowiec, Marta Penczar, The most important threats to economic policy, financial system stability and PLN credibility , Safe Bank: Vol. 93 No. 4 (2023)
- Marcin Mrowiec, Marta Penczar, The most important threats to economic policy, financial system stability and PLN credibility – results of the 13th edition of the forecast consensus of the European Financial Congress , Safe Bank: Vol. 95 No. 2 (2024)
- Marta Penczar, Marcin Mrowiec, Najważniejsze zagrożenia dla polityki gospodarczej, stabilności systemu finansowego i wiarygodności PLN – wyniki konsensusu prognostycznego Europejskiego Kongresu Finansowego , Safe Bank: Vol. 91 No. 2 (2023)
Vol. 69 No. 4 (2017)
Published: 2018-03-15
10.26354
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.