I mortgages they have become more expensive as a result of the increase in rates by the ECB established in order to contain the surge in inflation. The extent of the increase depends on many factors: the type of loan, the amount, the number of installments paid, the initial rate and so on. But both those who already have an open mortgage and those who intend to buy in the coming months would do well to do the math. Fixed or floating rate? Constant installment or with a roof? Which is more convenient? Let's do some calculations.
Fixed and variable rate mortgages: here are all the increases
According to the calculations of Economy Courier, who today plans to contract a variable loan over 30 years from 140 thousand - a figure which today represents the average amount requested -, in the event that the 75 basis point increase in the rate decided last week by the ECB were to be paid in full on the value of the euro, he would be forced to pay 50 euros more per month than anticipated. Those who already have a mortgage in progress could face increases of up to 150-180 euros per month.
Passing instead to the fixed rate, those who have already taken out a mortgage in recent years have nothing to fear: everything remains as it is. Those who have yet to turn it on, on the other hand, risk pay a steep price. “The Eurirs, the parameter that in fact determines the cost of this type of loan, is experiencing an unpredictable trend”, underlines the via Solferino newspaper. In general, however, we can say that, compared to a year ago, the effective rates of fixed-line loans are about 200 cents higher compared to a year ago. And new increases could still come.
Variable or fixed mortgage: which one to choose?
Who today decides to contract a new fixed rate mortgage, must therefore take into account much higher rates than those of a year ago, but greater peace of mind in the long term compared to those who choose the variable. The amount to be paid, albeit higher, will always remain the same and, if the macroeconomic situation improves in the future, there is always a subrogation on the horizon.
If, on the other hand, the choice falls on a variable rate mortgage there will be a considerable initial advantage compared to the fixed rate, which however could already decrease in the short term due to further increases.
Variable mortgage with ceiling or constant installment
Then there are two other options to carefully consider. The first is a variable mortgage with cap. It is a variable rate loan with a pre-established maximum threshold. In practice, even if market rates exceeded the ceiling, the mortgage would not rise beyond that limit. In this context, however, it must be considered that the "threshold" is often set at a higher rate than that of fixed-rate mortgages.
The second option is that of fixed rate variable mortgage: in this case, if the rate increases, the installment always remains the same, but the duration of the loan is lengthened.
In any case, despite the rate hike, a mortgage still remains cheaper than renting.
