the installment could increase by 50 euros per month

The announcement of the ECB on the new Euribor rate hike, which according to experts could reach + 0.75%. An increase that will determine increases in the installment of those who have subscribed a variable rate mortgage: it is estimated about 50 euros more on the next installment, with an annual increase of 150 euros.

Families in difficulty

Significant increases which could put many families under pressure. Already in the first 9 months of the year, according to the survey commissioned by to mUp Research, 2.4 million Italians with a mortgage a variable rate they said they had difficulty repaying the loan and as many as 218,000 borrowers had to skip one or more installments. And if prices continue to rise, 780,000 borrowers (between fixed and variable) have said they may be forced to skip the next installments.

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Fixed rate mortgage: what changes

The situation is different for those who have a fixed-rate mortgage: in that case the borrower knows from the beginning what percentage of interest is required to pay the credit institution. It is true that taking out a fixed-rate mortgage today is still much more expensive than in the past.

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How much can the mortgage increase?

To calculate the increase in the installment of a variable mortgage, took it as a reference an average loan (€ 126,000 in 25 years signed in January 2022) by evaluating how it has grown following the rate hikes by the ECB and assuming that for the next few months the Euribor, the reference index for variable mortgages, will grow by 0, 75%. The starting rate (Tan) subscribed in January and used in the analysis is equal to 0.67%, corresponding to a monthly payment of 456 euros.

Well, an average borrower who signed a variable loan of 126,000 euros in January 2022 would find himself, if there were further increases, to pay an installment of 604 euros, namely the 32% more than the first installment.

In fact, already in October the installment came to around 556 eurosor about 100 euros more compared to the initial one.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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