Abstract
Mortgage lending is investigated as an effective tool for solving residential problems of the country’s population. The advantages and disadvantages of types of mortgage loans and models of the mortgage market are considered. The German (one-tier) model and the American (two-tier) model of the mortgage market are characterized. Conclusions have been made regarding the state of mortgage lending in European Union countries. The interest rates on mortgages in the countries of the world are analyzed and differences of mortgage lending are revealed in some of them. An estimation of the state of mortgage lending in Ukraine is given. The issue of state support to the mortgage sector is considered, which will facilitate the intensification of investment activity in this area and housing construction. The socio-economic motives of effective solution of the housing problem of residents of the Vinnytsia region were revealed, the analysis of the domestic normative-legal base and application of its norms in practice were carried out. Study of foreign experience has provided an opportunity to highlight different methods by which the state regulates relations in the process of mortgage lending. The peculiarities of provision of mortgage loans to the citizens of the country are highlighted and ways of further development of mortgage lending in Ukraine are elucidated, which can timely and adequately respond to external and internal challenges and threats, and strengthen the economic security of the state. The ways of further development of mortgage lending in Ukraine are suggested: development of the strategy of mortgage market development taking into account foreign experience, introduction of a mortgage insurance system, stimulating the population to mortgage and increasing the amount of social programs, creating of a quality bail on mortgage loans, securitization of the mortgage lending market, reduction of interest rates on mortgages etc.
Highlights
Housing problem dominates in the modern domestic society
The research involved using the following methods and techniques: abstraction — to generalize scientific approaches to the definition of the essence of the concept of «mortgage lending»; the method of analogy — to scrutinise the possible introduction of some elements of the mortgage lending mechanism of foreign countries into domestic banks taking into account the existing banking practices in the countries of the European Union; statistical and comparative analyses of economic indicators — to assess the state of home loans on the secondary housing market in Ukraine
Mortgage is a type of security of the fulfilment of the obligations by real estate that is used and owned by the mortgagor, according to which the mortgagee is entitled, in case of nonfeasance by the debtor of the obligation secured by the mortgage, to meet their claims at the expense of the mortgage mainly before other creditors of the debtor in the manner established by the Law [5]
Summary
Housing problem dominates in the modern domestic society. Housing shortage affects the social, family and professional activities of citizens. One of the effective tools for solving this problem is a mortgage loan. Mortgage and home loans are a significant factor in the country’s economic and social development. More apartments in new buildings are sold, which, in turn, has a positive impact on the production of building materials and constructions. Mortgage is extremely important for increasing the stability and efficiency of the country’s banking sector. Low risk compared to other banking transactions is considered to be the advantage of mortgage lending. At this stage of Ukraine’s economic development, it is the development of the mortgage lending system that should be paid considerable attention to
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