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Variable rate mortgages, and the rush of installments is non-stop

Variable rate mortgages, and the rush of installments is non-stop

The race to increase mortgage payments does not stop. For those with a variable mortgage The premium increased by an average of 212.43 euros per month compared to 2022. The Federal National Observatory, which has been monitoring the costs of variable and fixed-rate mortgages for years, has detected troubling upward trends, which have brought many families to their knees. “Continuous rate hikes by the European Central Bank in an attempt to stem the inflationary race have set – as analysts note – very serious repercussions for citizens, especially those who have taken out variable rate mortgages. In fact, the main effects appear on higher loan and financing premiumsbut above all on those who are much more expensive than mortgages.

The worst case is undoubtedly related to who made the stipulation Variable rate loan agreement, Perhaps take advantage of the favorable conditions of recent years. In the case of the €115,000 25-year variable mortgage, the Observatory estimates that the monthly installment has seen an average increase of +44% compared to 2022 and +64% compared to 2021. This translates, compared to the previous year, to an increase of +212.43€ per month, or +2,549.16€ per year. These are “unsustainable increases for many families, also in light of the general increase in prices, from the energy to the food sector, which has caused the cost of living to skyrocket” emphasizes Onff.

Things are no better on the front of fixed-rate mortgages: but in this case it is good to consider that the increase compared to 2022 is merely hypothetical, considering that the condition is executed under different contractual conditions at different times. In detail, by taking out a fixed rate mortgage today, there would be 6% more onerous premium on average than a fixed rate mortgage stipulated in 2022, but even more impressive is the gap with the 2021 premium, which is +31%. The cost of a €115,000 25-year fixed-rate mortgage stipulated in 2023, for example, is on average €916.20 higher than it was in 2022. But the most worrying increase is demonstrated by extending the comparison into 2021, that is, before prices start to rise: the 2023/2021 comparison reveals a difference in the total cost of acquiring mo for you at a fixed rate of €41,682. .

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According to the Federal National Mortgage Observatory, mortgages have become a real emergency, as more and more families who are having difficulty in making installment payments are turning to our branches to seek support and determine the best solution to meet the payments. In this sense, the option set by the government, which allows a fixed-rate mortgage to be renegotiated, but only under certain conditions, is still not sufficient: the first is no default.

A solution that adds, among other things, Onf, as many have pointed out to us, not all credit institutions are willing to implement. Greater effort is needed in a phase as delicate and complex as the current one, so it is necessary to foresee an expansion of the Gasparini Solidarity Fund for Mortgages on first homes, as well as granting access to those who are in default for more than 90 days; It is necessary to allow the mortgage to be renegotiated in sustainable installments, for example by deferring payment of part of the additional interest accrued, and adding installments at the end of the amortization plan, thus making it interest-free (due to the prohibition of autopsy); Allowing renegotiation or fixed-rate solutions (which the government envisages in the budget law) also for defaulters and extending the Isee threshold and loan cap to take advantage of this option. The fixed rate must be set and updated by the government on the basis of decisions taken by the European Central Bank.

Finally, the Federal National Observatory reminds all citizens who wish to evaluate suspensions, solutions or renegotiate the loan provided, that they can contact the Federconsumatori branches, located throughout Italy, for information and assistance.

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