Mortgage lending as a long-term form of investment

The article examines the state of mortgage lending in Ukraine, the features of its development, and the analysis of the main trends in the mortgage market. The issuance of new mortgages in 2021–2024 takes into account, in particular, changes in the distribution of the primary and secondary real estate markets. The main factors influencing the amounts of mortgage loans are highlighted, including macroeconomic conditions, interest rates, government support, and changes in the preferences of home buyers. It is proven that thanks to mortgages, banks have the opportunity to invest in real estate, which retains or increases its value over time. Mortgage lending is considered as a financial mechanism in which the borrower receives funds as collateral for real estate, mostly residential, but although traditionally a mortgage is considered as a tool for purchasing housing, in a broader economic context it also acts as a form of investment activity, both for individual investors and for banking institutions, investment funds and the state. At the level of financial markets, mortgage lending is the basis for the formation of mortgage securities, which allows converting a pool of mortgage loans into liquid assets suitable for purchase and sale on open markets. This process contributes to attracting investment into the economy and activating the financial system as a whole. Investments and mortgage loans are important components of the modern financial system, interacting with each other and affecting the economic development of society. Investments, as a broader concept, encompass various forms of investment for the purpose of making a profit, while mortgage lending acts as one of the mechanisms for implementing investments, especially in the real estate sector. From the lender's side, a mortgage is a reliable way to invest capital with a predictable income and relatively low risks due to collateral. From the borrower's side, a mortgage loan allows for a long-term investment in real estate, which over time can increase in value or bring additional income. Thus, mortgage lending is not only a form of providing housing needs, but also an effective financial instrument of an investment nature, which, if used responsibly, contributes to both individual well-being and the stability of the economy as a whole. For investors, mortgage lending provides a stable profit in the form of interest payments, and for the economy as a whole, it stimulates the development of the construction industry and related sectors. The features of mortgages as an investment are substantiated, which concerns the risks that are secured by collateral – real estate. However, macroeconomic conditions, the level of income of the population, the stability of financial institutions, and government support play an important role. Mortgage lending combines a social function with the possibility of receiving long-term investment income, which makes it one of the key elements of the modern economy. The structure of debt on mortgage loans issued to individuals is presented, which allows us to assess the level of credit burden on the population, as well as identify potential risks for the banking sector. Mortgage loans issued to individuals are analyzed in a regional aspect. The main problems are identified, which include a decrease in the supply of secondary housing, the need to reduce rents and expand state programs. Recommendations are proposed to stimulate the mortgage market, in particular: to optimize lending conditions, develop support programs and ensure the stability of the banking system. The conclusions obtained are important for the formation of effective monetary policy and further development of the mortgage market in Ukraine. In general, the mortgage market of Ukraine continues to develop, but it needs to adapt to modern economic challenges. Mortgage lending is not only a socially important mechanism for providing housing to the population, but also an effective investment tool that combines stability, material security and the ability to create profitable financial instruments. The ability to manage risks and a deep understanding of market processes make this form of investment one of the key ones in the modern financial system.