Gov't to promote fixed-rate mortgages

The Polish government will try to increase the popularity of fixed-rate mortgages to prevent shocks for borrowers when interest rates rise, the development and technology minister has said.

Currently, most mortgages in Poland are based on a floating interest rate. This has resulted in mortgage payments nearly doubling for some borrowers after the central bank increased its reference rate to 5.25 percent from a record-low level of 0.10 percent in a series of hikes aimed to stem inflation.

Speaking to private broadcaster RMF24 on Monday, Waldemar Buda said the government would present a package of housing solutions in June.

"We want most Polish customers to take out loans based on a fixed rate, just like in France or the United States," he said. "We will expect banks to make their offer more attractive so that a Polish citizen doesn't take on such a big risk of interest rate swings."