Banks: Installment increases of up to €174 per month – Mortgages on fire

I’ve been set on fire loans Continuous increases interest rates from central banks. Despite the consistent borrower reward programs they have advertised banks And the service Aims To “freeze” mortgage interest rates for one year from May 2, Service costs have already risen dramatically. With the ECB interest rate at 3% and the 3-month Euribor at 3.17%, monthly loan payments have already seen significant increases.

to Example Loan 100,000 euros for a period of 20 years He had a monthly installment in July 2022 at 536 euros With Euribor at zero and an interest rate of 2.50%. With an euribor of 2.75%, the interest rate is 5.25% and the monthly installment is at 681 euros. With euribor at 3%, the premium is 695 euros, ie The increase amounts to 159 euros per month and 1908 euros per year.

to get a loan 100,000 euros for a period of 30 years Increase the monthly installment up to 174 eurosGiven that Borrower She was paying €401 at 2.50% interest and now she pays €575 at 5.50% interest.

Which loans have the highest increases?

Given that housing loans It carries interest in Greece, and the highest fees are:

• “New” loans, i.e. loans that are not close to the maturity date but are in the middle or even earlier. They have higher monthly installment fees
• Loans with the longest repayment period. For example, the burden on a loan with a repayment period of 15 years is lower than that of a loan with a repayment period of 30 years.

Keeping in mind that the average amount of mortgages varies between 80,000 – 100,000 euros and average duration 20-25 years oldThe following examples are indicative of the “burden” that borrowers have to bear (the amount of the installment per 1000 Euros).

Examples

Mortgage loan 80,000 for 15 years

• Received a monthly installment of €496 in June 2022 (2.5% interest).
• Today he has a monthly premium of 658 euros (5.50% interest).
• The increase is 162 euros
• If he does not take advantage of the interest rate “freeze”, the premium will amount to 680 euros – he earns from the consistency program 22 euros per month and charges a fee of 162 euros per month.

Mortgage loan 80,000 for 15 years

• Received a monthly installment of €672 in June 2022 (2.5% interest).
• Today he has a monthly premium of 823 euros (5.50% interest).
• The increase is 151 euros
• If he does not take advantage of the interest rate “freeze”, the premium will be 850€ – he earns from the consistency program 27€ per month and charges 151€ per month.

80,000 20-year mortgage

• Received a monthly installment of €428 in June 2022 (2.5% interest).
• Today she has a monthly installment of 556 euros (5.50% interest)
• The increase is 128 euros
• If he does not take advantage of the “freeze” of interest rates, the premium will amount to 578 euros – he earns from the consistency program 22 euros per month and charges a fee of 128 euros per month.

100,000 20-year mortgage

• Received a monthly installment of €536 in June 2022 (2.5% interest).
• Today he has a monthly installment of 695 euros (5.50% interest)
• The increase is 159 euros
• If he does not take advantage of the “freeze” of interest rates, the premium will amount to 723 euros – he earns from the consistency program 28 euros per month and charges a fee of 159 euros per month.

80,000 30-year mortgage

• He had a monthly installment of 320 euros in June 2022 (2.5% interest).
• Today he has a monthly installment of 460 euros (at an interest rate of 5.50%)
• The increase is 140 euros
• If he does not take advantage of the “freeze” of interest rates, the premium will amount to 485 euros – he earns from the consistency program 25 euros per month and charges a fee of 140 euros per month.

100,000 30-year mortgage

• Received a monthly installment of 401 EUR in June 2022 (2.5% interest)
• Today she has a monthly installment of 575 euros (5.50% interest)
• The increase is 174 euros
• If he does not take advantage of the “freeze” of interest rates, the premium will amount to 607 euros – the consistency program earns 32 euros per month and charges an additional fee of 174 euros per month.

Half a million in loans

According to first estimates, the measure to freeze interest rates concerns about 400,000 – 500,000 loans, as The vast majority of mortgages are variable rate (After 2018, ten years after the crisis, there was a shift to fixed-rate mortgages). The share of the four systems in terms of loan payments secured by residential real estate is about 95%. It is known that In the 2011-2017 period, 86% of mortgages were variable rate This percentage decreased to 46% in 2022.

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