Mortgage financing and inflation: bankruptcy risk for real estate owners?

Berlin The economic consequences of the energy crisis are putting consumers under financial pressure. The historically high rate of inflation is putting a strain on people’s household budgets. Many can no longer save money. Others may no longer be able to service their real estate loans.

In the worst case, the dream of owning your own home is over when the property has to be auctioned off. For the managing director of the Bremen state association of house and land, Ingmar Vergau, there are already signs of a turnaround. “For a long time people thought it was better to pay off a loan instead of having high rental costs,” Vergau told the “Weser Kurier”. “But this calculation no longer works if ancillary costs are just as high or higher than the rent or discount. This is going to be a huge problem for some.”

But how big is the real risk for real estate owners of losing their own property or even slipping into personal bankruptcy? Experts assess the situation differently – an overview.