Variable rate mortgages with rising payments

In 2022, 26% of active mortgage loans were at a variable rate. The European Central Bank (ECB) raised interest rates in January 2022, and the most significant impact was on the average installment of these loans, which increased by an average of +36% compared to mid-2022, with a peak of +49% for mortgages disbursed in the last five years. According to an analysis conducted by CRIF on the effects of the increase in mortgage rates, borrowers faced higher financial exposure despite making 24 installments between January 2022 and December 2023.

The growth in interest rates led to a +25% increase in overall debt levels among those with variable rate mortgages over the last five years. While there was no significant increase in insolvency rates among adjustable rate mortgage holders, there was an increase in financial tension as shown by CRIF’s financial tension index, indicating 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. A potential rate cut in June 2024 could provide relief for borrowers and help stabilize their financial situations.

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

By Riley Johnson

As a content writer at, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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