“DEVELOPMENT OF MORTGAGE LENDING IN THE MODERN ECONOMY: CHALLENGES AND PROSPECTS”

Аннотация

The article analyzes the current state and ways of developing mortgage lending with an emphasis ontheexampleof a specific housing construction facility. Thearticle examines the historical aspects of mortgage lending, its importance for the economy, as well as current trends and problems faced by the market. Special attention is paid to the analysis of a specific housing construction facility to illustrate the practical aspects of using mortgage loans. The article concludes with recommendations for improving mortgage lending mechanisms and identifies promisingareas forfurther research in thisarea. Key words: Mortgage lending, Housing construction, Economics, Financial instruments, Housing affordability, Credit market, Mortgage loan development, Mortgage lending problems, Improvement of lending mechanisms, Government support, Development barriers, Historical overview, Market analysis, Innovations in lending. Itroduction Mortgage lending is one of the most important elements of the modern economy, providing broad access to housing for various segments of the population. This mechanism promotes the development of the construction sector, improves living standards, and stimulates economic growth. The introduction of mortgage loans has become one of the key factors enabling a large number of families to acquire their own housing, which in turn has a positive impact on the social and economic stabilityofsociety. Mortgage loans play a crucial role in the economy, as they not only contribute to solving housing issues but also have a significant influence on various economic sectors. They stimulate demand for construction materials and services, create jobs, and contribute to GDP. Assessing the impact of mortgage lending on the economy highlights its importance and the need for its continued development and improvement. The purpose of this study is to analyze the current state of mortgage lending and to identify ways of developing it using a specific residential construction project as an example. The objectives of https://ijmri.de/index.php/jmsi volume 4,issue3,2025 497 the study include: • Analyzing the current state of the mortgage lending market. • Identifying key problems and barriers to the development of mortgage loans. • Studying a specific residential construction project. •Developing proposals for improving mortgage lending mechanisms. The object of the study is the mortgage lending market, and the subject is the development paths based ontheexampleofa specific residential construction project. To achieve the set goals and objectives, the study employed various methods, including analysis of scientific literature, statistical data analysis, expert assessments, and empirical research. A comprehensive approach makes it possible to assess the state and development prospects of mortgagelending in themostcomplete and objective manner. Main Body The modern mortgage lending market offers various types of mortgage loans, such as annuity loans, differentiated loans, fixed-rate and floating-rate loans, as well as targeted and non-targeted loans. Annuity loans, being the most popular, provide fixed monthly payments throughout the loan term, allowing borrowers to plan their expenses. Differentiated loans involve a gradual decreasein monthly payments as theprincipal debt is repaid. Economic factors have a significant impact on the mortgage lending market. One of the key factors is the level of interest rates, which directly affects the affordability of mortgage loans for borrowers. High interest rates can make mortgages less accessible for broad segments of the population,which inturn affects housingdemand and slowsdown construction rates. Economic crises also have a significant impact on the mortgage lending market. During periods of economic instability, household incomes decrease, unemployment rises, and the risks of mortgage defaults increase. Regulation and legislation in the field of mortgage lending play a crucial role in ensuring market stabilityand protecting borrowers' rights. Problems andBarriers to theDevelopment ofMortgageLending: 1. High Interest Rates and Credit Accessibility One of the main problems faced by borrowers is the high interest rates on mortgage loans. High rates make mortgages less accessible, especially for young families and low-income citizens. This leads to a decrease in demand for mortgage loans and slows down housing construction. An analysis ofinterest ratelevels shows that they depend onmany factors, including theinflation rate, the central bank's monetary policy, the country's economic situation, and the level of competitionin thelending market. To improvetheaccessibility ofmortgage loans, itis necessary to develop measures to reduce interest rates, including government subsidy programs and preferential lending schemes. 2. Bureaucratic Barriers and Complex Approval Procedures To reduce bureaucratic barriers and simplify approval procedures, it is necessary to implement automation and