Mortgages are being, at the end of 2022, one of the great headaches in the field of family loans.
The rise in interest rates by the ECB is posing a challenge for those who see in the reviews how the Euribor rise is beginning to be applied to their quotas. If 2022 started negatively, it has closed 2022 with an index in December of 3,018%, which, added to the differential of variable mortgages, far exceeds expectations, making the installment more expensive by up to 250 euros per month – always based on the average mortgage of 150,000 euros at 25 years -.
However, the variables are not the only stumbling block. Apart from the rise in rates, those who have already opted for fixed mortgages to avoid this variable nature have seen how the forecast of increases by the European Central Bank has also made the conditions of this type of loan more expensive.
“And it does not seem that there will be a respite in the medium term because they warned of new increases for this 2023 in search of controlling runaway inflation that does not give families respite. This will continue to make mortgages more expensive and increase the pressure on family budgets” they explain from the banking sector.
But meanwhile, there is another series of minor expenses that also need to be attended to and that, due to the high rate of price increases, are making it difficult to face them without considering, in some cases, a small loan to help get around the moment and that In addition, it serves to give a break to the family economy when there is no other alternative to be able to finance it.
In that case, the best option is to look for a site like FairLoan in which the best loans in the financial sector and credit agencies are compared to find out what the conditions are and sit down and make numbers realistically.
What are those expenses?
- Vehicles: those who are choosing to change vehicles in search of better mobility for work performance in cities and, above all, in low-emission zones, are doing so through financing almost as it helps to support the spent. “Although leasing is an option, for many it is cheaper to own the vehicle in the long run” they comment.
- Reforms: small reforms in homes to update the facilities or to respond to the real needs of the family is usually another reason to go for quick loans or even debt reunification.
- Payment of some bills: there are unforeseen bills when, for example, an appliance breaks that require quick solutions and the cheapest option does not always allow online financing. This type of extra expenses, when there is no mattress because it is being used for the mortgage payment or other habitual expenses, ends up having an impact on a credit.
- Studies: many are seeking to improve their working conditions through specialization in areas that are currently in high demand. Especially in the world of ICT. This type of master’s, postgraduate or specialized course usually has a high cost and that is why many choose to look for alternatives to pay for it in installments.
In short, a complicated 2023 is expected at the family level if one takes into account that the Euribor is expected to end the year around 4-4.5%, which can lead many to have problems and opt for the moratorium that they have approved in Make novations with an extension of the repayment term or even negotiating a new fixed mortgage.