Variable rate mortgages, those who have taken the risk are responsible for their choices
European Central Bank (ECB) rate hike has brought the installments of those who took out a variable rate mortgage higher. And on this the race has been “unleashed” to see who could save these borrowers some money. In the front row the State.
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When and if the banks will listen to him, he will have to give a return to the lenders who, not being charitable companies, moving today’s installments further and collecting them at lower revenues for rates that will presumably fall, cannot only decide to collect less (although this “minus” is passed off as less dangerous than developing more insolvencies). And the State, as we know, spends our money to do so, and the time that its authorities spend meeting and promoting the so-called moral suasion is also money.
Increase in variable rate mortgages. Because public intervention is wrong and harmful
Those who chose a variable rate mortgage at the time did so because it was cheaper than a fixed rate one. Some time ago, variable interest rates were close to zero. In this period he therefore saved money by taking on the risk. The opposite of those who have chosen a fixed rate mortgage: no risk, higher costs and certainty of the same. Rates are rising today… so what?
READ ALSO: The nightmare of the mortgage: with the rise in interest rates, installments up to 70% more
Here are many to the rescue of those who had chosen the risk. Aid that is done with public money even for those who had not chosen the risk and up to now have paid more. Is this a fair policy? And not rather a reward for the most daring who, when their temerity has no longer benefited their savings, become little sheep in search of help?
By the same logic, for example, should the State intervene for those who, playing on the stock market, buying shares, see them drop so much and lose money? Or for those who decide to buy one of the most daring cryptocurrencies and then find themselves with nothing? Whatever decision is taken, only one thing is certain: a bad educational action will be taken for today’s and future savings. Anyone will feel encouraged to invest in financial products and in the riskiest and most immediately profitable mortgages, so then there is Pantalone who saves and pays.
*founder and president of the Users and Consumers Association
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