Self‑Employed Borrowers Emerge as Growing Risk Segment

The share of self-employed borrowers in new mortgages has doubled over the past five years to 28%, and the non-performing loan rate in this segment is nearly three times that of employee borrowers, the central bank NBS warned. Self-employed borrowers have lower rates of university education, as well as less stable and harder to verify income. At the same time, they purchase more expensive properties, yet their higher risk profile is not offset by higher interest rates.

(trend.sk)