Economics and finance

The expert's answer

Interest rates and mortgages: how to behave when the fixed costs less than the variable

Roberto Anedda explains the dynamics of interest rates: if, how and when it is convenient to choose the fixed or variable

08/05/2023

With Roberto Anedda, Senior advisor Nomisma and expert in the real estate and mortgage markets, we address the issue of raising interest rates by the European Central Bank to counter the inflationary wave. Above all, we analyze how this increase is reflected in mortgages and loans that banks then provide to businesses and citizens. Most real estate mortgages in Italy concern the purchase of the first home and have a medium-long duration.

Those who in past years had taken advantage of the very low rates by opting for a variable rate mortgage have seen the installments increase significantly in the last 12-18 months and to date, with the same amount disbursed and duration of the loan, the fixed-rate mortgage can have a lower installment than the variable one. With the expert we analyze the trend of these dynamics: if, how and when it is convenient to choose a mortgage rather than the other and if it is convenient to change when we have already turned on one. We will also reflect on the possible behaviour of the European Central Bank in the coming months and possible scenarios.