MODERN CONDITION AND PROSPECTS FOR DEVELOPMENT OF THE MORTGAGE MARKET IN UKRAINE

One of the important objectives of national economic policy is to create effective demand among various segments of the population in the housing market. In most countries, the main forms of solution this problem are housing loans for the population using mortgage credit schemes. Development of the mortgage market demonstrates how economic problems intensify, suggests the effective use of financial resources and determines social objectives to attract a diverse population in meeting their housing needs through the mechanisms of the financial market. The mortgage market began to acquire the most rapid development in the period from 2005 to 2008. This was due to the gradual formation of macro-economic prerequisites of mortgage as a result of economic growth, stabilization of the currency, low inflation rates and increasing incomes. Since 2009 the volume of mortgage loans has been gradually reduced. A large proportion of mortgage loan accounts for regions with the most developed housing market, with a high level of industrial facilities and business activity. Interest rates are high. This is due to the high cost of long-term funds to banks, and transaction risks the credit institution are incorporated in the cost of mortgage. The mortgage containment can be explained by the limited purchasing power of the population. The problems can be attributed to the predominance of foreign currency loans. Foreign currency loans account for about 76%. Cash balances on loans granted in local currency tend to decrease, as opposed to loans in US dollars. For the mortgage lending development the primary market should operate and government loan programs should be developed, together with affordable housing, support and employment of young people. However, because of the situation in the country and the lack of the budget funds, the government has cut funding for public housing programs. Prospects for the mortgage lending development in Ukraine depend on the legislative support, economic growth, price stability and exchange rates, improving the financial and credit system and development of real estate market.