The ECB today decided to raise interest rates by 0.75 points. There will be repercussions on those who have a variable rate mortgage. Codacons did some simulations.
Assuming a mortgage of 150 thousand euros over 25 years – one of the most requested types in Italy – and in the event that the increase in the rate is transferred entirely to the loan, the monthly payment will go from the current 590 euros to 643 euros, with an increase of +53 euros per month, +636 euros per year. On a loan of 200 thousand euros, again at 25 years, the monthly payment will go from 787 euros to 858 euros, +71 euros per month, +852 euros per year.
It is worse for those who have taken out heavier and longer-term loans: on a mortgage from 250 thousand euros to 30 years, the monthly payment rises from 847 euros to 937 euros, with an increase of +90 euros per month and a greater equal outlay to € 1,080 on an annual basis.
“We had foreseen last August the sting on mortgages that would be triggered in the autumn, and unfortunately our fears have been confirmed – says the president of Codacons, Carlo Rienzi – The increase in the cost of loans thus adds to the expensive bills and ‘price emergency, further aggravating the accounts of Italian families ”.