With interest rates falling, borrowers can benefit from significant savings on their repayments.
In recent times, the mortgage market has seen a number of significant changes, especially following recent decisions by the European Central Bank (ECB). These changes deliver interesting opportunities for those looking for a financing for your home. In this new context, those who have already taken out a mortgage will be able to count on significant savings, which in some cases can reach up to 700 euros per year.
These benefits will also be available without having to present the ISEE. This is because they are the natural consequence of the new economic changes at a European level. With the right information and strategies, it is therefore possible to obtain significant savings on your mortgages, making the financial commitment linked to the purchase of a house lighter.
Concessions without ISEE for mortgages: how it works
With the announcement of the ECB’s interest rate cut, many borrowers can now benefit from a reduction in their variable rate mortgage repayments. This reduction, which can reach up to 700 euros per year, represents a significant saving opportunity. It is important to note that this facilitation does not require the presentation of the ISEEmaking it accessible to a wide spectrum of people.
According to Telemutuo.it estimates, the savings on a variable rate mortgage of 200,000 euros it may vary between 354 and 708 euros per year, depending on the duration of the loan. These savings are a direct consequence of the interest rate cut from 4.5% to 4.25% decided by the ECB. The reduction in rates marks a turning point compared to the trend of the last two years, during which rates were continuously increasing.
The impact of the interest rate cut is also significant for smaller mortgages. For example, for a mortgage of 100,000 euros with a duration of 20 years, the monthly savings can reach up to 13.50 euros, while for a mortgage of 200,000 euros with a duration of 30 years, the monthly savings can reach 59 euros .
Analysts predict further rate cuts in the coming months, which could lead to even greater savings for borrowers. Some experts suggest that the ECB could make a second rate cut of the same amount at its next meeting in July, or even a steeper cut of half a percentage point. In the event of a further cut of 0.25 percentage points, monthly savings could increase further, varying between 13.50 and 27 euros for mortgages between 100,000 and 200,000 euros with a duration of 20 years.
