The costs of mortgage lending have increased massively over the past twelve months.
According to the financing specialist Dr.
Small.
The standard rate, which has gradually increased over the past few months, was recently 1,505 euros.
Not only did it rise by more than 110 euros within a month, but it is now 85 percent above the level of the previous year.
The standard rate is based on a model calculation for construction financing of a loan amount of 300,000 euros, 2 percent initial repayment, a loan-to-value ratio of 80 percent and a ten-year fixed interest rate.
The average loan amount has developed similarly spectacularly.
In October, this fell to 277,000 euros.
The significant drop of EUR 317,000 since the beginning of the year is due to the
due to changed conditions on the financing market.
In addition to the skyrocketing construction interest rates, higher energy and living costs also played a major role in determining the loan amount.
The initial repayment rate has also fallen.
Initial and follow-up financing are currently commissioned with an average initial repayment of exactly 2 percent and are therefore exactly on the limit of the recommended value of between 2 and 3 percent.
In a low repayment, many borrowers see the opportunity to make their construction financing affordable.
However, those who repay less need longer to pay off the loan.
In addition, the remaining debt that is outstanding after repayment of the initial financing remains at a high level - and with it the risk of interest rate changes for the follow-up financing.
Due to the current uncertainties on the interest rate market, more borrowers resorted to longer fixed interest rates in October.
On average, the enshrined period is currently 13 years and two months.
Since February of this year there has been a clear trend towards shorter fixed interest rates, and now the trend is going in the opposite direction again for the first time.
Forward loans also no longer appear to be in demand.
Their demand for the total mortgage lending volume fell by more than one percentage point to 3.97 percent in October.