Mortgage: it’s still the right time to apply for it

All one does is repeat it, it’s true. But the reality is that what we are experiencing continues to be the best time to apply for a mortgage. Not surprisingly, after the inevitable slowdown during the long lockdown period, the questions on the credit front have now returned to pre-Covid levels and, in some cases, have even exceeded them, thanks to the aid policy implemented by Government and the banks themselves.

But let’s take a closer look at the situation. Fixed rate mortgages prevailed in these first months of 2020 – which in particularly favorable historical moments, such as the current one, allow the same favorable conditions to be maintained for the entire duration of the loan. And this despite the fact that variable rates are currently cheaper. But you know, the risk of the latter is linked to the instability of the monthly installment, which can increase or decrease depending on the fluctuation of the Euribor (the interest rate used as an indexing parameter for variable rate mortgage loans) and that it could lead to severe repercussions in the future.

In general, however, both types of rates remain at historic lows, as confirmed by the weekly report on the mortgage market of the ABI (Italian Banking Association). And conditions continue to be convenient, as underlined by the reference indicators. In more detail, the short-term trend of the one-month Euribor is still down and almost reaches -0.503%, while in one year the fall goes from -0.263% to -0.284%.
Even in the long term, the Eurirs indicators (the reference interbank rate used as an indexing parameter for fixed rate mortgages) continue to remain low, albeit with a slight rise. Up to ten years the reference rates reach -0.18%, while at thirty they reach 0.07%.

It does not end here. As further confirmation of the convenience of taking out a mortgage in this period, the requests for subrogation (the mechanism that allows you to move your loan to another credit institution to take advantage of the advantageous conditions dictated by the market) continue to increase significantly. In short, there is nothing to say: this is still the perfect time to get the most out and to take advantage of the advantageous conditions offered by the banking market.