Following the ECB’s decision to further increase monetary costs, repayments on both variable-rate mortgages and new fixed-rate mortgages are increasing. Until? For experts, the peak is near. But a real descent won’t happen until 2024. Some simulations.
Autumn with peak frost, still a harsh winter, then a bit of warmth at New Year’s. In summary, these are the weather forecasts for the coming months for those who have (or want to take out) a real estate mortgage. Italian families have been living with the bad weather since July 2022, when the ECB started its 10 euro cycle. rate increases: The cost of money has been raised from zero at 4.5% in just over a year.
Variable terms increased by 66%
A very rapid increase that has resulted in an exhaustion of people with variable interest loans.
Let’s take a few for example, one worth 126 thousand euros over 25 yearsdetermined in January ’22: the rate was well below 1% at the time, in January this year it was already above three, now it is above five: the monthly charge, which initially amounted to less than 450 euros, is now almost 750 , with an increase of more than 300 euros per month, equal to 66%.
Source: TG 24 Sky
I am Lawrence Sickels and I work in the news industry. For the past few years, I have been writing for The News Dept, a web-based platform dedicated to providing readers with quality journalism. My main area of focus is covering economic news and business trends across the globe.