In January 2022, the European Central Bank (ECB) raised interest rates, and this had a significant impact on variable rate mortgage borrowers. The most noticeable impact was on the average installment of these loans, which increased by +36% on average compared to mid-2022 lows, with a maximum of +49% for mortgages paid off in the last 5 year. This information comes from CRIF’s analysis of the effects of rising mortgage rates.

The main finding from CRIF’s analysis is that borrowers are facing increased financial exposure due to higher interest rates, despite paying 24 installments between January 2022 and December 2023. Additionally, rising interest rates have led to an increase in total debt by +25% compared to that of variable rate mortgages over the past 5 years.

Despite the increase in interest rates, those with adjustable rate mortgages did not show an increase in default rates. However, there has been an increase in financial stress among borrowers with variable rate mortgages as shown by CRIF’s Financial Stress Index. This index indicates higher levels of indebtedness and risk of default among borrowers with variable rate mortgages.

Simone Capecchi, CEO of CRIF commented on the impact of interest rate dynamics on variable rate borrowers over the past two years. Although there was no significant increase in insolvency rates, there was a significant increase in financial stress. The potential for a rate cut in June 2024 could provide relief to borrowers and help stabilize their financial situation.

In light of current macroeconomic and geopolitical uncertainties, it is important to remain alert and ready to face any challenges that may arise in the future.

By Samantha Johnson

As a dedicated content writer at, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

Leave a Reply