Fabi, leap in mortgages, for variable rates up to +70%, after the new increase by the ECB – Corriere.it

The installments of new fixed-rate mortgages are set to double in 2023, while those of variable-rate mortgages should rise by 55-65%. For a fixed rate mortgage of 200,000 euros over 25 years (the average rate applied by banks could be higher than 6%), the monthly installment will be 1,304 euros; for a loan of 100,000 euros, again for 25 years, with an interest rate of 5.3%, the monthly installment will instead be 609 euros. StThese are Fabi’s calculations in the light of the new increase by the ECB. For old mortgages, on the other hand, there is no difference for the fixed rate, while the variable rate installments have undergone increases of up to 70%.

At the end of March 2023, the total value of mortgages for the purchase of homes amounted to 425.5 billion euros, up by around 50 billion compared to the end of 2017 (+13.4%), recalls Fabi. Of the total of 25.7 million Italian families, those who have a mortgage are around 3.5 million, out of a total of 6.8 million citizens who are also indebted with other forms of financing, such as consumer credit and personal loans. Between consumer credit and personal loans, banks granted 251.2 billion euros of loans to citizens, in line with the values ​​at the end of 2017, but slowing down compared to the trend of recent months, a sign of the negative impact of the increase of interest rates.

The installments of the old fixed-rate mortgages, i.e. those disbursed until the end of 2021-beginning of 2022, do not change and will remain intact until the repayment plan ends. Lhe installments of old variable-rate mortgages have instead increased on average by 70-75%: this means that those who used to pay an installment of around 500 euros a month, today pay 875 euros a month, i.e. 375 euros more. And it is very probable that, in the light of the ECB’s decision, the installments of the old variable-rate mortgages could go up again, underlined the union.
The new mortgagesthe at fixed rates they have gone from an average interest of around 1.8% to even over 5% with monthly installments which, therefore, can or will be, on the basis of bank offers, even more than doubled. New variable-rate mortgages could soon reach an average of 6% from 0.6% at the end of 2021: this means that for a 150,000-euro loan with a duration of 20 years, the monthly payment will be 1,090 euros, a good 325 euros more (+63.9%) than what would have been obtained a year ago or 665 euros.