Prague - Mortgage lending has become the most expensive in the past five years. The average loan interest has increased in the month of August up to 5.82 percent, according to the Fincentrum Hypoindex indicators.

The mortgage interest with a one-year fixed rate has risen by 0.25 point and thus exceed the figure of 6.07 percent.

"The increased interest rates at the beginning of this summer has sent shockwaves across the mortgage market," states the Fincentrum report.

According to some experts, mortgages are now less advantageous and available than in the past, because banks are more careful in providing them these days due to the current financial crisis.

Other experts predict that the financial crisis will have an opposite effect - it will make mortgages cheaper and more available.

Most of them, however, agree that the Czech economy will see a slow down in growth in the second half of the year.