Review of housing mortgage lending policy practices in Latvia

Abstract

The aim of the research is to evaluate the housing mortgage lending policy development aspects in Latvia.
Research methodology: Analytical research method and comparative research method have been applied to carry out the research.

Findings of the research shows that housing mortgage lending policy system is well arranged and complies with European Union requirements in this field. However the development of housing mortgage lending market during the period after accession to the European Union and up to crisis in 2008 has created negative impact on development of the housing market in post-crisis period until today in Latvia.

Research limitations: In the research there are evaluated housing mortgage system legal and policy aspects and mortgage market trends in Latvia, but not made scientific discussion of the theoretical aspects of mortgage lending system in general.

Originality of the research is that author’s find out that the task of government is to develop and implement financial mechanisms for multi-apartment building sector and combining them with the mortgage loans it would be possible significantly improve the housing situation in the country by providing affordable mortgage loans to households for the purchasing, construction and renovation of housing.