L’ HELP has issued a circular letter to promote the adoption by associated banks across the national territory of measures in favor of families with variable rate mortgages without cap in order to mitigate the impacts of the increase in interest rates on the amount of installments.
We need to take action as these are measures that can be implemented upon request and in agreement with those who have chosen to take out a variable rate mortgage, without placing new burdens on them, according to the operational possibilities of the individual banks and compatibly with the limits imposed by European regulations and the personal conditions of the beneficiaries.
27 July 2023: The ECB raised interest rates to 4,25% from 4,0%
These are the three main applicable measures:
- possible extension of the repayment plan financing for the purchase of a first home;
- possible expansion of the audience of beneficiaries of the renegotiation of mortgage loan contracts, introduced by art.1, paragraph 322, of the Law 29 December 2022, n. 197 (eg, also admitting to the measure subjects with ISEE income or with mortgages of a higher amount than required by law);
– possible recourse to Solidarity fund for mortgages for the purchase of the first home (so-called Gasparrini Fund), in order to suspend - upon the occurrence of specific events - the payment of the loan instalments.
It is therefore useful to contact your bank to evaluate the three aforementioned measures but also other improved conditions to address the impacts of the increase in interest rates on variable rate mortgages.
The ABI Circular can be downloaded here with which the Banking Association requests broad and timely support from the banking and financial world.
Alex Gaetani