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Rates soar, for mortgages opened today +8,800 euros

2022-04-23T14:38:57.444Z


Codacons, Ukraine effect and inflation. Stable variable (ANSA)


 The price of the brick, a classic Italian safe haven asset, is soaring.

The flare-up of inflation recorded in recent months and the conflict that broke out in Ukraine have had direct effects on interest rates applied on mortgages, making it more expensive for families to apply for a loan to purchase a property today.

Codacons did the calculations, comparing the rates charged by banks in the pre-conflict period and those in effect today.


    The market concerns are affected in particular by fixed rates - analyzes Codacons - While the Euribor, the reference index for variable rate mortgages, has remained substantially stable in the last 4 months (the 1-month Euribor is set today at -0.54%, compared to -0.58% of last January 3), the Eurirs, also known as Irs, the reference index for fixed-rate mortgages, has experienced a real surge, passing for example to 20-year mortgages from 0.60% at the beginning of January to the current 1.69%.


    Those who take out a fixed-rate mortgage today for the purchase of their first home thus find final rates higher on average by + 0.50% compared to those who started a loan in January: a difference that, translated into a nutshell, is close to the +9,000 euros in total final expense on the mortgage.


    In January 2022, in fact, the Tan (i.e. the pure interest rate that applies to a loan) on fixed rates was on average 1.20%, while today it is above 1.70%.

On the basis of these data, Codacons has made projections to understand how the rise in rates affects the pockets of consumers who intend to take out a mortgage.


    Assuming a loan request of 100,000 euros for the purchase of a first home and three different loan terms (20, 25 and 30 years), the increase in rates today costs up to + 24.5 euros on each individual monthly payment compared to to the same loan requested in January.

The most penalized are those who take out mortgages at 30 years - the Codacons again analyzes - The higher final rate on this type of loan and the longer duration of the loan increase the gap, leading today to a family that takes out a fixed-rate mortgage at 30 years to spend a total of about 8,812 euros more than the same loan taken out at the beginning of January 2022, only for the higher cost of the installments and without considering the other expenses (appraisals, practice fees, bank costs). 


Source: ansa

All life articles on 2022-04-23

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