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Banks becoming more flexible on mortgage defaults

Vicky Kapur Emirates Business 247
Banks becoming more flexible on mortgage defaults - Banks - flexible - mortgage defaults - lending institutions - financial trouble - UAE - debt


Banks and other lending institutions are becoming more flexible in dealing with customers in financial trouble, as mortgage defaults in the UAE are expected to rise with an increasing number of people unable to service their outstanding debt.



Some people have turned in keys to their apartments to us before leaving the country," said Luisa Baffa, International Mortgage Consultant at Sherwoods Independent Property Consultants.

"However, I must add that a number of banks are trying to reschedule payment plans for troubled customers to revive the relationship," she told Emirates Business.

"Banks are definitely becoming more reasonable," said Dr Sobhi Agha, General Manager, The Specialists, a real estate consultancy.

Dubai-based mortgage lender Amlak Finance had recently said that it has experienced more loan delinquencies in 2009 than the previous year and expects the number of defaults on mortgages to grow further this year.

The mortgage market in Dubai is worth Dh20 billion, up from Dh5.4bn in 2007.

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