Mortgages, fixed or variable rate? Here’s which one is best for you
Since the beginning of the year, the Bce he cut the interest rates three times. These cuts positively affect the cup Euriborwhich determine the rates of variable mortgagesleading to a reduction in the monthly payment of around 20 euros for a mortgage of 150,000 euros extended over 20 years.
The Euribor 1 month is now at 3.44%, down from 3.82% in May and 3.87% in January. The SO average for 20 and 30 year variable mortgages it fell by more than half a percentage point from June, standing at 4.35% in September.
Despite the decline in variable ratesthe majority of consumers, 99.6% according to MutuiOnline, continue to prefer the fixed ratewhich with a TAN average of 2.96%, remains significantly cheaper than the variable. It is expected that the medium-term policies of the BCE can rebalance the convenience between fixed and variable rates by the end of 2025, especially if the ECB were to decide on further cuts of 25 basis points each.
The growing popularity of mortgage subrogation also reflects an increase in the average duration of mortgages, now at 24.3 years, and an increase in the average amount requested by consumers, which goes to 139,264 euros in the first 9 months of 2024, a sign of a healthy market. The report Loan To Value shows growth both in requests, where it reaches 68.5%, and in disbursements, at 66.2%.
Infine, i muttered green continue to offer advantageous rates compared to traditional ones, with the best fixed rate for green mortgages standing at 2.55% on a amount of 150,000 euros over 20 yearsresulting in a lower monthly payment than standard mortgages.
