In the first half of this year, Czech bank Raiffeisenbank extended a total of 6,338 new mortgage loans in the total volume of 10.3 bln crowns (359 mln eur). The number of the extended loans rose 102 pct year-on-year and volume increased 147 pct year-on-year.

The bank's mortgage loan product manager Jan Bures said 'even despite a slight growth in interest rates, mortgages are still nearly the cheapest in Europe'. He added that the growth is supported also by strong age-groups from the second half of the 1970's, who need to have their own housing.

'Besides the number of newly extended loans, we record a growth in the average amount of one loan. While the average amount reached 1.53 mln crowns in 2006 H1, it is 1.79 mln crowns this year,' he said.

The average amount of the American mortgage rose by 100,000 crowns to 883,000 crowns.

This year, clients chose a three-year fixation, which has been chosen by 42 pct of clients. About one fourth of clients have chosen a five-year fixation and the interest in the newly offered two-year fixation grows. On the other hand, the interest in the one-year fixation dropped.

The highest demand for mortgages was recorded in Prague, where the bank closed 37 pct of all new contracts.

The demand for American mortgages grows - these loans formed 18 pct of all new mortgages in H1.