I think a tread giving real monetary figures on what increased interest rates will do to mortgages is warranted as so many people are used to 0% ECB rates and increases will be a big shock.
It is very likely that the ECB will raise rates by 2% in the next 9-12 months.
Recent mortgage pricing would suggest that a 3 year fixed rate will be about 4.75% at that point up from about 2.75% today.
That's a whopping 70% increase.
In money terms a €350,000 mortgage over 30 years would go up by €400 a month.
If the ECB was more aggressive and move to 3%, rates would average 5.75% (over 100% increase) and todays €1428 mortgage payment would increase to €2042 - a €600+ increase per month!
If you are buying a house at present or recently bought or are in a short term fixed rate, you may want to sit down and think hard about a long term fix as an extra €400-€600+ a month on top of general inflation cold be very painful
It is very likely that the ECB will raise rates by 2% in the next 9-12 months.
Recent mortgage pricing would suggest that a 3 year fixed rate will be about 4.75% at that point up from about 2.75% today.
That's a whopping 70% increase.
In money terms a €350,000 mortgage over 30 years would go up by €400 a month.
If the ECB was more aggressive and move to 3%, rates would average 5.75% (over 100% increase) and todays €1428 mortgage payment would increase to €2042 - a €600+ increase per month!
If you are buying a house at present or recently bought or are in a short term fixed rate, you may want to sit down and think hard about a long term fix as an extra €400-€600+ a month on top of general inflation cold be very painful