Abstract
Research background: The paper is focused on the financial product, esp. on mortgage loans that are often used products in the field of long-term financing in the Czech Republic. These products provide commercial banks and other financial institutions on the Czech globalized financial market. Purpose of the article: The aim of the paper is to analyze the situation on the globalized financial market focused on the mortgage loans and loans from building societies in view of the global Covid-19 pandemic. Methods: Firstly a theoretical background with a review of the literature is provided, then research methodology is described, the key part brings results of development of mortgage loans, development of interest rates and the analysis of the current situation on the mortgage loan market with estimation of future development. The last part is focused on the comparison of selected mortgage loans provided by five financial institution. The article is based on primary and secondary sources. A detailed research together with the analysis and critical assessment of accessible materials will enable to identify the main objectives in the field of study. Findings & Value added: Interest rates on mortgage loans have on the Czech market downward trend in the last years. The best conditions scored in 2019 loan from building society Modrá pyramida. The overall situation in 2020 cause lower interest rates in the mortgage loans. Lower annual percentage rate of charge and smaller monthly mortgage loan repayment and the total overpayment also correspond.
Highlights
After the financial crisis ended there was a revival in the mortgage market
The mortgage market is experiencing constant new changes and measures aimed at increasing financial market stability
Our analysis will focus on mortgage loans, which belong to consumer loans in the Czech Republic
Summary
2013 there has been a growth in the number of contracts concluded and at the same time the amount of mortgage loans increase [1]. The mortgage market is experiencing constant new changes and measures aimed at increasing financial market stability. Our analysis will focus on mortgage loans, which belong to consumer loans in the Czech Republic. Regulation of consumer credits includes the rules of negotiations of subjects on financial market with consumers. The Consumer Credit Act was extended with a range of entities subject to the Czech National Bank supervision with effect from 1 December 2016. It applies to all providers of consumer credit and consumer credit agents.
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