With the increase in the reference rates of the ECB for the next quarter, a restrictive measure adopted to contain inflation, an attempt will be made to raise as much money as possible. In this way I will be able to try to reduce inflation. However, this scenario will have negative effects on mortgages, which will rise in the coming months. Let’s see how much!
There ECB has decided to use a hard fist to try to defeat the inflation that is gripping Europe and the European Monetary Union. One of the possible decisions to contain these inflation increases is to raise the reference rates. So the cost of money will be higher and collection from credit institutions will be greater.
By taking money out of circulation theeffect will be to reduce the inflationary effect. But what will happen to Italian mortgages?
Mortgages: how much is the rate today?
Before you see which type of mortgage is most recommended to try to save as much as possible, let’s see how far the reference rates on mortgages have reached nowadays. The ECB has in fact increased the reference rate by 0.75%, bringing the total increases at 1.25%the highest level in the last 11 years.
This intervention will also have important effects on the mortgages of the Italians that will inevitably rise, going to burden in particular on those who have a variable rate mortgage. For example Euribor 3 months (+ 1.23% at the end of September 2022) will increase by + 1.89% in December 2022, by + 2.19% in December 2024 and by + 2.49% in December 2027.
Mortgages: which is the cheapest?
Let’s see now what is the most convenient type of mortgage to choose, to try to cushion the increases in interest rates as much as possible. In addition to the basic fixed or variable rate, it is possible to choose many varieties of mortgages that can make life easier for families and businesses. For example, there is the “green” mortgage intended for those who want to buy an energy-efficient home.
To exploit, instead, the building concessions provided by the governmentsuch as the Restructuring Bonus, the Facades Bonus or the 110% Superbonus, it is better to focus on the mortgage restructuring or on the mutual liquidity.