Interest rate reduction on mortgage loans

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Banks are responding to the climate of caution among households as regards taking out a loan with new cuts in mortgage rates, in a bid to spark the interest of potential new buyers. They are also extending, until the end of the year, the interest rate freeze in force since last May for existing borrowers.

Kathimerini understands that there will be a restraint of interest rates at the level of 2.70-2.80% plus the bank's margin, for all loans previously taken out with a variable rate. The measure was decided last May with effect for one year and applied to all current borrowers who saw their loan installment frozen at the May 2023 level as banks absorbed the new Euribor increases.

The freeze has helped contain the cost of servicing the installments for around 450,000 mortgages totaling €19.5 billion. The extension of the scheme until the end of 2024 is considered a done...

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