The sharp rise in interest rates is putting some homeowners under pressure.
(Photo: dpa)
Frankfurt, Dusseldorf The rapid increase in interest rates has drastically reduced the demand for new loans. Many banks have already felt this. According to the central association ZIA, new applications for construction financing fell by 43 percent at the end of 2022 compared to the same period last year.
But it’s not just those interested in real estate who are now brushing aside. Many buyers who will have to repay their loans in the near future are also anxious about the new situation on the financing market. The Bundesbank board member, Joachim Wuermeling, recently warned that rising inflation is affecting the debt sustainability of households and companies. “In this respect, it could be that there are more defaults and more losses,” said the central banker.
Because interest rates have quadrupled since the end of 2021. Many debtors who financed their house cheaply years ago are threatened with an interest rate shock. So what to do? These are the most important questions and answers that owners should now consider when considering follow-up financing:
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Further
Read on now
Get access to this and every other article in the
web and in our app.
Further