Mortgages are going up and leaving many people in the lurch

emonseo21

The Euribor (the reference index used for mortgages) is beginning to rise, it is still negative, but some small changes are noticeable that are tightening the granting of mortgages and other credits in the Euro zone.

It closed the year at -, the month of January closed at - Furthermore, this value is equal to the highest of , October, where it was - Furthermore, the forecast for and from Bankinter 's analysis and strategy department is that it will continue to rise, around -% in and -% in


It is true that according to these forecasts we still have a few years of negative interest left. Negative interests seem normal to us now, but I can assure you that in they were completely inconceivable for many people. We would never have imagined that in Denmark there has been the case of zero or negative mortgages , in which money is returned to the borrower.

Why is the Euribor rising?
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If money began to be printed due to the Covid pandemic, the strong recovery (which is causing shortages of raw materials and components) and the related inflation began to push central banks around the world to consider that it was necessary to raise rates. interest rates to reduce inflation. Last June , the Fed already began to announce its intention to end the stimuli and raise interest rates, although it was not planned until the end of On the other hand, the Federal Reserve in raised rates in the face of higher inflation to %, and plans to make two more increases  Romania Email List   throughout this year. At the moment the rates are low, they have gone from % to %.



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What does the European Central Bank do? At the moment, although it should be more restrictive than the Fed with inflation, its statutes only require it to control inflation. It chooses to keep rates at zero, but a future increase in interest rates is expected. ECB Governor Christine Lagarde has said she does not plan to raise rates until She says the European recovery is slower, so there is no point in raising interest rates yet.

But of course, if it already warns that rates are going to rise, the market begins to react and take precautions, so that the indexes at which mortgages are usually set begin to rise, the most common and well-known being the Euribor.

Low-interest fixed mortgages, a window to disappear?
Ine Mortgage Interest Rate Statistics
In the first decade of the century , fixed-rate mortgages were an exception; variable-rate mortgages were the norm, as shown in the INE graph that accompanies this paragraph. It was not until when fixed-rate mortgages became more common. The famous “fixed rate” video was in , and recommended a type of mortgage that had begun to become more popular (and easier to obtain) during Taking advantage of a time when interest rates were at their lowest point in history, the fixed rate was a good idea.

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It is true that it is still feasible to find fixed rate mortgages , during , complaints are beginning to be seen on social networks that they are not so easy to get, (they will be more difficult to get, but it is false that fixed rate mortgages have stopped being signed. permanent). You can also see how they are paying higher interest rates. In a case that I have been told, in a new housing development, the developer credit bank has worsened the conditions for subrogation by more than % of what it initially offered. Which makes them quite expensive, at least to a greater extent than if the same tenths had been raised with interest of %.