Mortgages, the installment will drop by 100 euros per month by the end of 2024

By the end of the year, banks could lower the installment of various variable rate mortgages by around 100 euros per month.
A lifeline, that of the drop in interest rates, for holders of variable rate mortgages who have witnessed a sharp increase in installments in recent months.
Now, in a completely new context, banks are preparing to reduce monthly installments by around 10 euros starting from April; of 100 euros per month by the end of 2024 and again of 120 euros per month by summer 2025, according to a recent study by Facile.it.
Banks have already begun to lower the installments of mortgages indexed to the six-month Euribor; for those with 12-month indexation it is estimated they will do the same starting from May or June of this year.
At the moment the 12-month Euribor is around 3.69%.
In December it was at 3.679%, in November at 4.022% and in October at 4.160%.
A negative trend is evident, which is finally starting to impact also on the lowering of the installments of which one has a variable rate mortgage or for those who open a fixed rate mortgage today.
From 2022, 10 interest rate increases In July 2022, the European Central Bank revolutionized its monetary policy to respond to the post-pandemic economic crisis.
Led by Christine Lagarde, the ECB ended six years of zero or negative rates and inaugurated an upward path in the price of money with the aim of reducing inflation.
Since then, it has raised interest rates ten times, bringing them from 0% to the current 4.5%.
This policy has led to an increase in the cost of credit in general throughout the Eurozone, therefore also in Italy, and to an increase in the prices of variable rate mortgages, since these see their price updated with each increase or decrease in rates.
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In the aforementioned period, variable mortgages have become more expensive by an average of 200 euros per month, which has triggered a wave of requests for banks to change loan conditions and mortgage subrogation.
Several banks have decided to negotiate with their customers a reduction in the differential (the interest that is added to the Euribor to calculate the installment) to avoid transforming the mortgage from a variable to a fixed rate.
This differential usually varies depending on each customer's relationship with the bank, i.e.
on the products they have contracted, such as insurance or investment funds, with fluctuations that can range from a quarter of a point – on some mortgages granted years ago – up to exceeding three percentage points.