Mortgage, the installment doubled in one year: the differences between fixed and variable (and the choices to make)

The consequences of the decisions of the ECB

An increase of 30 euros per month in itself does not weigh much, but if you add it to those that have added up in recent months and which have brought the mortgage payment from the initial 720 to 1,130 that will be paid in the coming months, the situation changes. radically. The amounts quoted are those relating to a variable mortgage from 200 thousand euros to 30 years stipulated 10 years ago at the conditions current on the market at the time and the 33 euro increase compared to the current installment is what the debtor will have to bear if the 25 cents increase in the cost of the money decided on Thursday by the ECB pour all on the Euribor. The consequences of the Frankfurt maneuver on variable mortgages change a lot depending on the conditions of the loan in progress; the worst must be expected by those who have recently taken out a mortgage (one might add somewhat rashly) starting with a very low interest rate. For example, a loan, again from 200,000 euros over 30 years but started at the beginning of 2022 at 1% with an installment of 643 euros, in the coming months, again assuming a further increase of 25 cents, will have an installment of 1,321 euros, i.e. 105% more.

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