Variable rate mortgages with rising payments

The European Central Bank (ECB) raised interest rates in January 2022, and the most significant impact was felt by variable rate mortgage borrowers. According to an analysis conducted by CRIF, the average installment of these loans increased by an average of +36% compared to the lows of mid-2022, with a peak of +49% for mortgages disbursed in the last 5 years. This increase in financial exposure for borrowers was despite making only 24 installments between January 2022 and December 2023.

The CRIF analysis also revealed that the growth in interest rates led to a +25% increase in overall debt levels for those with variable rate mortgages over the last five years. While there was no significant increase in insolvency rates among adjustable rate mortgage borrowers, there was an increase in financial tension as indicated by CRIF’s financial tension index. This index showed 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. Although there has not been a significant increase in insolvency rates, there has been a notable rise in financial stress. The potential for a rate cut in June 2024 could provide relief for borrowers and help stabilize their financial situations.

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

By Aiden Johnson

As a content writer at, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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