(ANSA) – ROME, 08 OCTOBER – Mortgage rates in Italy, after the ECB’s cuts and the prospect of new reductions, are more convenient than in Germany and the United Kingdom, especially on fixed-line loans which travel, on average, just over 3 %. This is underlined by a comparative analysis by Mutuionline. it on a 20-year mortgage on the first home by a 40-year-old individual, for the sum of 140,000 euros on a property worth 200,000 euros.
The best APR offered on the Italian market for the loan taken into consideration, the group recalls, is 3.10% for the fixed and 4.46% for the variable. Analyzing the other European countries, we note that in Spain the rates are similar, with the fixed rate a little higher than in Italy at 3.27% APR and the variable rate blocked for the first 2 years at 4.18%. In Germany and France the situation is worse, with the APR at 3.71% and 3.79% on the fixed rate respectively; not even better in Greece, where it is 4.62% on fixed and 5.87% on variable. Even in the Netherlands we find less convenient rates than in Italy, with an APR of 3.87% for the fixed rate and 4.97% for the variable rate.
Those who want to take out a mortgage in the United Kingdom must take into account even higher interests and cannot seek consolation in the fixed rate, since the restrictive policy of the Bank of England does not seem to stop: 5.40% APR for the fixed rate, which it often has durations of less than 20 years, and 5.60% for the variable. In Europe, however, there are those who have more convenient rates than Italy: in Switzerland, in fact, the costs for the mortgage are much lower, with an APR of just 1.80% on the fixed rate (which however is blocked for only 15 years) and 2.08% for the variable. (HANDLE).
Read the full article on ANSA.it
Italian mortgage rates 2024
As a prominent blog news writer, I’ve analyzed the latest development in Italy’s mortgage rates, and I’m excited to share my insights with you. The news article, citing recent updates, suggests that mortgage rates in Italy have become more convenient compared to previous years, primarily due to the European Central Bank’s (ECB) cuts and the possibility of further reductions.
To put this into perspective, let’s look at the current state of bank lending rates in Italy. According to Trading Economics [[1]], the bank lending rate in Italy decreased to 5.57 percent in July 2024 from 5.64 percent in June of the same year. This indicates a downward trend in interest rates, making it more attractive for individuals and businesses to borrow money.
Delving deeper into mortgage interest rates, we find that the rates have been increasing over the past few years, but still remain relatively low. Statista reports that the mortgage interest rate in Italy stood at 4.47 percent in the second quarter of 2023, up from 1.39 percent the year before [[2]]. While this represents a significant increase, the rate is still lower than what we’ve seen in previous years.
So, how do these rates translate into actual mortgage payments? To give you a better understanding, Piedmont Properties offers an Italian Mortgage Payments Calculator that allows you to estimate the monthly cost of a mortgage in Italy [[3]]. This tool takes into account various factors, including the loan amount, interest rate, and repayment term, providing a comprehensive picture of the costs involved.
the recent ECB cuts and prospects of new reductions have led to more convenient mortgage rates in Italy. While interest rates have been increasing over the past few years, they remain relatively low, making it an attractive time for individuals and businesses to explore mortgage options. With the help of online tools like mortgage calculators, borrowers can make informed decisions about their mortgage payments and navigate the Italian mortgage market with confidence.
In my analysis, the decrease in bank lending rates and mortgage interest rates is a positive sign for Italy’s economy, as it can stimulate growth and investment. As a blog news writer, I’ll continue to monitor these developments and provide updates on the Italian mortgage market. Stay tuned for more insights and expert analysis!
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