RIGA, Sept 22 (LETA) - This year, the demand for loans for purchase of construction of new housing - the amount of new mortgage loans in the second quarter of this year rose by 28.4 percent compared to the first quarter of this year, LETA learned from Swedbank.

Swedbank data suggest that the amount of loans for purchase of apartments in new buildings has doubled.

The amount of new mortgage loans in the second quarter of this year reached EUR 294 million compared to EUR 229 million issued in the first quarter, and EUR 134 million issued in the second quarter of last year.

"The growth is driven by natural demand for new housing both in apartment and private house segments. This demand is upheld by increase of household income level, the growing amount of savings and different state support programs," said Swedbank representative Normunds Ducis.

The average sum of the loan has increased by 7.6 percent to reach EUR 98,000. The average term of the loan is 25 years.

The biggest demand for apartments has been recorded in Riga (72 percent), and Pieriga (24 percent).

Demand for construction of private homes in Latvia regions has also increased considerably - to 42 percent of all mortgage loans. The average sum of the loan for construction of a private home is EUR 128,000.

Swedbank is Latvia's largest bank by assets.