The war in Ukraine represents a nightmare not only for the civilians of that country, but also for the Italians who are seeing their lives change from many points of view.
Economists point out that the war in Ukraine has literally turbo-charged inflation which is already very heavy. Italians are heavily feeling the burden of the cost of living in regards to petrol has now reached unsustainable figures and especially as regards the electricity and gas bills, which threaten new increases in April.
But the problem also comes for mortgages. Up to now, mortgages have in a sense been excluded from the inflationary spiral. The fixed rate mortgage rose 0.4% which is clearly not good news. But on the whole, the world of mortgages has not suffered the blow that many other items of expenditure by Italians have suffered. This is because the European Central Bank has kept both rates at zero anyway. But today inflation also due to the war in Ukraine threatens to reach really too high volumes and consequently the Central Bank will most likely be forced to raise rates.
The price increases arrive
For those who already have a fixed-rate mortgage, nothing changes and let’s say that in this scenario they are the only ones who actually don’t have to worry. But who instead he intends to start a home loan now, he would do well to be careful. In fact, experts point out that in such a context it is absolutely wrong to take out a variable rate mortgage because the rate could soon skyrocket.
Which one to choose
Much better to turn to the fixed-rate mortgage even if it currently appears slightly more inconvenient. But the strongest invitation is to those who have an active variable rate mortgage and therefore exposed to market fluctuations. Consumer protection associations emphasize how variable rate mortgages soon they could rocket strongly upwards, dragging the installment with them which would clearly become heavier and more onerous and all the various ancillary costs and taxes.
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It is therefore important to immediately switch to the fixed rate through the mortgage subrogation tool. Switching to the fixed rate will avoid the increases that are feared in the coming months and you will be safe. But in addition to the subrogation at the other bank, you can also renegotiate the loan at your own.
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