IMPACT OF THE COVID-19 PANDEMIC ON THE DEVELOPMENT OF MORTGAGE LENDING IN RUSSIA

Abstract

Relevance of the research topic. The coronavirus crisis has had a controversial impact on the mortgage market. On the one hand, mortgages during the Covid-19 pandemic have become more profitable due to lower interest rates and a decrease in the size of the down payment. On the other hand, for many citizens who are faced with the loss of work or a decrease in income, mortgages during the coronavirus period have turned into an overwhelming debt. Government support in the field of mortgage lending during the Covid-19 pandemic spurred the growth of mortgage loans, this support helped to meet part of the demand for mortgage transactions for 2021. Also, banks, from a decrease in interest on preferential mortgages on their proposed programs, received low income, in this situation borrowers who took out a mortgage under the state program in the first three or four months won. Mortgage lending is a very risky financing, both for lenders and borrowers, due to a number of interrelated reasons, such as imperfection of Russian legislation, reduced incomes of the population, and the COVID-19 pandemic. The situation with the COVID-19 pandemic has put many residents of Russia in a difficult position, especially those who, due to restrictive measures, faced disruptions in the activities of their organizations, having significantly lost income, but at the same time bears the burden of paying various kinds of loans, including including mortgage lending. Due to the introduction of the program for concessional mortgage lending, the dynamics of the mortgage market has increased, however, a decline in demand for mortgage loans is predicted after the completion of this program, which will lead to a decrease in the cost of housing. This trend will affect the collateral value of real estate purchased with a mortgage. The main problems of mortgages in the Russian Federation now are low incomes of the country as a whole and of each person individually, significant inflation, monopolization of the housing construction market, migration features, insufficient government participation in supporting mortgages and the underdevelopment of the mortgage securities market. The solution of the indicated restrictions will be possible only as a result of the general, progressive development of the country's economy in all its spheres: politics, social, construction, banking and other sectors. The purpose of the study is to assess the impact of the Covid-19 pandemic on the development of mortgage lending in Russia. Methods of comparison, generalization, analysis, tabular method were used in the work.