(Finance) – In the last 4 months the average rate on fixed rate mortgages has become increasingly lower than that of variable rate mortgages. The ABI reports this with reference to the rates applied on mortgages for the purchase of homes. In particular, in July 2023 the rate on fixed rate mortgages was 4.04% compared to 4.59% on variable rate mortgages; in June 2023 4.13% compared to 4.47%; in May 2023 4.15% compared to 4.40%; in April 4.06% compared to 4.33%.
Rates on fixed-rate mortgages that were lower or in line with variable-rate mortgages were also recorded in 2020 and 2021: fixed-rate mortgages subscribed in 2020 maintain an average rate of 1.31% and those subscribed in 2021 of 1.40%, despite the ECB rate increases.
Fixed rate mortgages, in a phase of rising prices interest rateskeep the repayment installment constant and therefore allow you not to suffer the effects caused by these increases.
The mutual it is a loan taken out for a very long period and therefore it is necessary to evaluate the different offers on the market to choose the type that best suits your needs.
In particular, when choosing a mortgage it is necessary to evaluate one’s current and prospective earning capacity, as well as considering the future evolution of interest rates.