Consumers’ Perception of Mortgage Repayment Risk in Poland and Methods of Mitigating IT: A Survey Study

Taking out a mortgage disrupts a household’s financial balance by introducing a significant expense in the form of monthly payments. Given the potential risks that may arise during the repayment of debt, consumers should be aware of the risks associated with their debt and feel the need to protect themselves against those risks. However, the question arises as to whether consumers are aware of these risks and the available protective measures. Therefore, the aim of this article is to determine the attitude of consumers toward the risk of mortgage repayment and to identify their preferred methods of mitigating it.

This article fills an existing research gap, as previous academic discussions on the risks associated with mortgage loans have, in most cases, addressed the issue from the banks’ perspective.

The article employs methods such as a review of both domestic and foreign academic literature, as well as a survey method using a proprietary questionnaire.

Survey showed that most of the borrowers surveyed rate the risk associated with their loan as low or somewhat low. This subjective assessment of risk is justified by the ratio of debt to income—for 72% of respondents, this ratio is less than 30%. The low risk assessment is also justified by: diversification of income sources and a stable source of income. At the same time, despite being aware of the importance of savings as a safety net in case of repayment difficulties, half of the respondents report having low savings, and 18% have none at all.