The Credit Record Bureau has started preparations to launch the residential value index. The index will specify prices per square meter in different districts, and be used to determine the amount of mortgages granted.

In order for the mortgage system to work and develop, start has been given in Turkey to create the essential residential value index. The mortgage system is widely used in the United States and the United Kingdom and thanks to the index prices per square meter in every district will ensure a balanced and fast evaluation of the loan.

  Banks say that they will be in a position to better evaluate loans through the index and experts' reports. However, they also point out that the information will not be available to the.

  According to information available the project is managed by the Credit Record Bureau (Kredi Kayıt Bürosu). This institution, established jointly by several banks, keeps records of the personal information of credit card holders, ATM card holders and those in debt, and gives this information to banks upon request.

How will the system work:

  Once the system starts working those applying for a loan can simply give the address of the property they want to buy to the bank. The banks will then find out the square meter price of the property simply by searching its details on the system. A senior level representative of a bank says that this system is still being installed and that therefore they do not know the details but expect the system to work in accordance with the applications used abroad.

   According to information obtained from bankers the mortgage the system will work as follows. It is important to figure prices per district because even in districts next to each other there are notable differences. Bankers say that they do not know how the prices will be calculated but they think it must come down to district bases. The Credit Record Bureau will update the square meter prices every six months.

  This way the development of prices can be measured over years and it will be obvious how much premium is reached in which district. In Turkey banks finance only 75 percent of a residential property. According to bankers, with this system they will consider financing 90 percent of a home in regions that have a fast premium. A banker says that in the UK banks offer up to 120 percent financing for a home. The expertise system will not be cancelled but bankers will have the opportunity to cross check their report with the index.

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