Fixed rates for mortgages are back in pole position, rediscovering themselves more attractive than ever. Mortgage rates have dropped dramatically in recent months: currently the fixed rate stands at 2,20% while the variable rate at 1,19%. The plus point, however, protects against possible bad surprises; for this reason customers seem to prefer it.
These data explain the boom in applications for fixed rate mortgages compared to variable rates. The fixed rate, in the first eight months of 2015, represents 72,3% of the overall choices for the activation of a mortgage. The variable rate, however, stops at 24,9% of the total, in strong case compared to the end of 2014.
In the first part of 2015, fixed-rate mortgages accounted for more than three-quarters of the total. Roberto Anedda, marketing director of the mutuionline.it portal explains that "such a sharp drop in landlines has led to an increase in demand not only for new disbursements but also for subrogations because the operation is now also interesting for those who have a mortgage in progress indexed. In the face of a slight increase in cost, you are safe for the future. Banks today can afford such low rates for the minimum cost of funding and they push towards the fixed rate because those who subscribe to it at current levels will hardly find it convenient to subrogate in the future”.
