Russians rushing to lock in mortgages

Moscow

RUSSIANS are racing to take out mortgages on concern that borrowing costs will rise further after the rouble's weakness prompted the central bank to increase interest rates.

The number of people applying for mortgages at Bank VTB 24, a retail unit of state-controlled VTB Group, almost tripled in the first two weeks of December compared with the November average, according to Andrey Osipov, head of the Moscow-based bank's home-loan department. The bank is lending as much as 2.5 billion roubles (S$61 million) each day, he said.

The rouble's rout, sparked by falling oil prices and sanctions imposed on businesses including OAO Sberbank, prompted Russians to begin buying luxury goods from …