Can someone explain why I got today an increase from 2.3 to 3.0, at the same time a friend of mine got an increase from 1,75 to 3,70 and a third one from 1,15 to 3,70.
Both variable rates. Why different? Any banker here who could explain?
Probably because the loan amounts are not the same, the duration, how the rate is calculated or even the date of signature.
Or maybe because of the profile of the borrowers (revenue, etc).
I’m sorry this happened to you OP and to your friends, but unfortunately this is the case with many banks, also in other parts of Europe.
The last few years have thought me a thing, to stay away forever from variable interest rates.
My loan back home has almost tripled in monthly payments.
Never again…
Can be a number of things:
1. what is the variable rate on your contract, does it have the same maturity as your friends? i.e: euribor 6m vs euribor 12m? Those rates are different.
2. If you get to the conclusion the rates are the same check your contract to see how the rates are updated, if you have a 12m rate then the update will most likely be the average of that rate for the past 12 months, since interest rates have been going up quite dramatically over the past year a few months of difference between the dates of update for you and your friends can mean a significant difference in the actual rates for the year. I. E. : assuming you both have 12m rates and your friend signed the contract three months before you, the rate he got in his update would be smaller than yours, since interest rate have been consistently going up.
3. Is it possible that you had a promotional rate for the first few years?
Anyway, refer to your contract and you will find the answers.
It really sucks… At the end of the day normal people are getting squeezed with these interest hikes to fight inflation while companies post record profits.
From 1,35 to 3,70…
Count yourself lucky… Looking at 4.05% from 1st March with BGL. ECB rates are due to go up again another 50bps at the end of March as well!
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Can someone explain why I got today an increase from 2.3 to 3.0, at the same time a friend of mine got an increase from 1,75 to 3,70 and a third one from 1,15 to 3,70.
Both variable rates. Why different? Any banker here who could explain?
Probably because the loan amounts are not the same, the duration, how the rate is calculated or even the date of signature.
Or maybe because of the profile of the borrowers (revenue, etc).
I’m sorry this happened to you OP and to your friends, but unfortunately this is the case with many banks, also in other parts of Europe.
The last few years have thought me a thing, to stay away forever from variable interest rates.
My loan back home has almost tripled in monthly payments.
Never again…
Can be a number of things:
1. what is the variable rate on your contract, does it have the same maturity as your friends? i.e: euribor 6m vs euribor 12m? Those rates are different.
2. If you get to the conclusion the rates are the same check your contract to see how the rates are updated, if you have a 12m rate then the update will most likely be the average of that rate for the past 12 months, since interest rates have been going up quite dramatically over the past year a few months of difference between the dates of update for you and your friends can mean a significant difference in the actual rates for the year. I. E. : assuming you both have 12m rates and your friend signed the contract three months before you, the rate he got in his update would be smaller than yours, since interest rate have been consistently going up.
3. Is it possible that you had a promotional rate for the first few years?
Anyway, refer to your contract and you will find the answers.
It really sucks… At the end of the day normal people are getting squeezed with these interest hikes to fight inflation while companies post record profits.
From 1,35 to 3,70…
Count yourself lucky… Looking at 4.05% from 1st March with BGL. ECB rates are due to go up again another 50bps at the end of March as well!
lol frau speck
I am locked for 20 years at a fixed rate of 1.2%
Gone are the days of free cash!