Great news is coming for those who pay the mortgage, although not for everyone. The Government is willing to do something to help those who want to request one.
Home loan – oipamagazine.it
If you’ve recently gotten a mortgage with a variable interest rate and you find yourself already regretting that decision, there’s no reason to fret.
The government has taken the decision to step in and rectify this situation. In the following article, we will outline the upcoming changes.
Currently, people who have an adjustable rate mortgage are in a bind. Since 2022, the monthly payments have increased around 275 euros.
This increase can be attributed to the European Central Bank’s decision to raise interest rates as a means of fighting inflation.
As a result, many people have been forced to sell their homes despite having an outstanding mortgage and go back to rent.
In more extreme cases, some individuals have experienced home foreclosures and subsequent auctions. Given the size of an average salary, it’s hard to sustain the continued rise in rates.
What changes in the field of variable rate mortgages?
Obtain a fixed rate mortgage from a lender is a demanding undertaking, as it requires a substantial income, a permanent employment contract and potentially a co-signer as well, typically a younger parent.
These are conditions that only a select few can meet. As a result, in 2023, the number of approved loans decreased significantly compared to previous years, leading to a tumultuous real estate market.
Buying a house – oipamagazine.it
In this chaotic landscape, the Meloni government has stepped in to help individuals who have opted for an adjustable rate mortgage.
The current state of affairs is characterized by a growing population of homeowners looking to sell their properties to avoid undertaking i extensive renovations imposed by the green revolution.
At the same time, there is a growing cohort of young people who aspire to buy homes, but with the condition of a fixed interest rate to mitigate any unpleasant surprises.
In between are the banks, willing to grant loans at a maximum variable rate. However, there is an imminent change in favor of the buyers on the horizon.
Great news for mortgage payers
In an attempt to deal with the current situation, the Meloni government has intervened to avoid an increase in the auctioned properties and to avoid further destabilization of the housing market.
Two possible solutions are currently being studied. The first option provides for the obligation for banks to accept applications from mortgage holders for extend their loans.
This would result in lower monthly payments over a longer period of time, but would still be subject to interest rate fluctuations determined by the European Central Bank.
Signing of the mortgage-oipamagazine.it contract
There are two hypotheses to consider, with the second being more favourable. This hypothesis foresees the activation of a variable rate mortgage with fixed installments.
This means that the monthly payment amount remains the same regardless of any fluctuations in interest rates. However, this would result in a longer loan term.
At the moment there is no official decree on the matter, as these are only proposals being examined by the government. However, it is always possible renegotiate the loanfrom a floating rate to a fixed rate.
2023-07-23 19:30:16
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