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Unsecured consumer loans at all-time high in Finland

Consumers borrowed 290 million euros in unsecured consumer loans in May, as mortgages also rose to a seven year high.

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Mortgage borrowing was 130 million euros higher in May than in the same month last year, according to the Bank of Finland. Image: Kimmo Hiltunen / Yle

The rate of borrowing in Finland reached record highs in May, according to the Bank of Finland, as new mortgage loans increased by 1.9 billion euros and unsecured consumer loans by 290 million euros.

The stock of unsecured consumer credit has now grown at an annual rate of 12 percent to 5.4 billion euros, making it the highest amount on record.

According to the bank, an increasing share of the consumer debt is coming from outside the credit institution sector, or it's borrowed from abroad.

Mortgage borrowing was 130 million euros higher than in the same month last year, making May 2019 the busiest month for mortgages since June 2012.

From January to May of this year, the number of mortgage loans increased by 1.5 percent, compared to the same period last year.

The mortgage loan stock grew to 98.5 billion euros in May, just as the annual interest rate on new housing loans fell to 0.78 percent.

Loans for the purchase of summer cottages also increased in May to 93 million euros, a year-on-year increase of seven percent.

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