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Variable rate mortgages with rising payments

In January 2022, variable rate mortgages accounted for 26% of active loans. The European Central Bank’s (ECB) decision to raise interest rates had a significant impact on the average installment of these loans, which increased by an average of +36% compared to the lows of mid-2022. Mortgages disbursed in the last five years saw a peak increase of +49%. This information was obtained through an analysis conducted by CRIF on the effects of rising mortgage rates.

The analysis revealed that borrowers with adjustable rate mortgages experienced an increase in financial exposure despite making 24 installments between January 2022 and December 2023. Additionally, there was a +25% increase in overall debt levels among borrowers with variable rate mortgages over the last five years.

Despite the rise in interest rates, insolvency rates did not increase among those with adjustable rate mortgages. However, there was an increase in financial tension as shown by CRIF’s financial tension index, which indicated higher levels of indebtedness and a risk of failure among borrowers with variable rate mortgages.

Simone Capecchi, Executive Director of CRIF, commented on the impact of interest rate dynamics on variable rate borrowers over the past two years. While there was no significant increase in insolvency rates, there was a notable rise in financial stress. A potential rate cut in June 2024 could provide relief for borrowers and help stabilize their financial situations.

In light of current macroeconomic and geopolitical uncertainties, it is crucial to remain vigilant and prepared to face any challenges that may arise in the future.

By Samantha Jones

As a dedicated content writer at, I bring a unique blend of creativity and precision to my work. With a passion for storytelling and a keen eye for detail, I strive to craft engaging and informative articles that captivate our readers. From breaking news to thought-provoking features, I am committed to delivering content that resonates with our audience and keeps them coming back for more. Join me on this exciting journey as we explore the ever-evolving world of news and information together.

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