In recent times, variable rate mortgages have caused quite a few headaches for those who have taken out one. In these products, the interest rate trend is correlated to fluctuations in the cost of money. Galloping inflation and the 10 rate hikes implemented by the ECB to slow down its pace have pushed up variable rates, as well as interest on loans.
Best variable rate mortgages under 36
Today, despite the critical issues related to the trend of the economic situation, there are still those who choose the variable. Facile.it has drawn up the list of the best variable rate mortgages for under 36s.
The comparison service of Facile.it has hypothesized a variable mortgage request from 170 thousand eurosto be repaid in 30 years, by a young person under the age of 36. All aimed at purchasing a property worth 195 thousand euros. The 3 solutions reported are the best according to the trend of the mortgage market in September 2023. Bear in mind that in addition to the monthly amount, the costs of the loan must also be consideredinvestigation and those relating to expertise on the property.
You Giovani Green Mortgage – Banco BPM
- Monthly installment amount: 888.95 euros
- Rate: 4.77% (Euribor 1M + 1.15%)
- APR: 4.96%
- Expenses: no preliminary investigation costs, appraisal at 320.00 euros
Mortgage for young people under 36 – BPER
- Monthly installment amount: 886.80 euros
- Rate: 4.75% (3M Euribor + 1.05%)
- APR: 4.97%
- The expenses: preliminary investigation at 390.00 euros, appraisal at 280.00 euros
Variable Mortgage Pronto – Banca Popolare Pugliese
- Monthly installment amount: 892.96 euros
- Rate: 4.81% (3M Euribor + 1.15%)
- APR: 5.05%
- The expenses: high preliminary investigation costs amounting to 1,870 euros, appraisal costs 290 euros
Other simulations are available on the aforementioned site.
Cheaper variable rate mortgages?
After a period of great criticality, it seems that the high tide that hit variable rate mortgages may abate at least partially. In the medium term, the advantage of the fixed rate seems destined to decrease and therefore variable rates become more convenient again.
Variable rate too high: what to do
In the event of new upheavals, there is a repertoire of possibilities for those who need to deal with variable rate mortgages that have become excessively expensive: ranging from renegotiation of the mortgage with your bank to subrogation, from early repayment to the transition to a fixed rate mortgage (in the presence of legal requirements).
Is a mortgage or rent better?
But the question of whether the fixed or variable rate is more convenient is now accompanied by another: with the increase in interest rates, is it better to have a mortgage or rent? A delicate question whose answer depends on numerous factors. In general, if you want to take out a mortgage, it is good practice to have your back covered by a sum equal to at least 20% of the cost of the property you intend to purchase. For other speculations based on numbers, please refer to the focus dedicated to the choice between mortgage and rent.
