Mortgages skyrocketing, installments inflated by 22% from January

The Sardinians who bought a house are shaking, with mortgages skyrocketing.

The rise in interest rates has inflated installments by 22% since January but according to many analysts the worst could still come: the increases expected until 2023 will exceed, in the most pessimistic estimates, the threshold of 30% .

A nightmare for those who have already purchased and, for those who intend to do so, an increasingly crucial crossroads in the choice of the type of financing: fixed or variable rate would mean saving tens of thousands of euros.

"The rate hikes decided by the European Central Bank in July and September have accelerated a sting on variable mortgages that has actually been underway since the beginning of the year - explains Andrea Polo , Head of Communication at Facile.it - Our simulations have not by chance established that for a standard loan of 126 thousand euros, signed last January with a duration of 25 years, at the beginning a monthly payment of 456 euros was paid. Nine months later it reached 560 euros. A substantial increase that could however be just the beginning ".

For Enrico Lobina , financial advisor from Cagliari, “the rise in rates risks throwing the budgets of families with lower incomes upside down. This is why a valid option for not losing your home could be to contact your bank for a re-negotiation of the mortgage that provides for a fixed installment with variable interest. A solution that has as a great unknown the duration of the loan, which has no certainty, but which allows for constant and more contained installments than those at a fixed rate. Moreover, statistically, the duration of these products almost always aligns with those at a fixed rate, making them more than advantageous ".

(Unioneonline)