Mortgages, it will be easier to switch from variable to fixed. But not for everyone

The measure to which Giorgetti referred for the maneuver restores a 2011 law

It will be easier convert a variable rate mortgage into a fixed rate mortgage. It is the measure announced by Economy Minister Giancarlo Giorgetti, which will take the form of a government amendment to the budget law, which outlines the path chosen to alleviate the weight of the rate hikes which is affecting, and will continue to affect, those who have chosen the variable and now, month after month, it finds itself having to bear increasingly onerous installments.

A 2011 law, applied until 31 December 2012, was reinstated. It introduced an advantageous calculation mechanism for the transition of mortgage loans from variable to fixed rates.

An operation which, however, provided for three stakes that limited access to the benefit. First, the income. Whoever entered into the loan agreement had to have an income not exceeding 35 thousand euros. Second, the value of the mortgage. It was possible to transform a contract that had an amount of less than 200 thousand euros. Third, the payment of installments. Only those who had not accumulated delays could access the transformation. The mortgages concerned were those entered into until the entry into force of the law.

If the same scheme were to be replicated, the possibility could also be envisaged for mortgages stipulated before the entry into force of the 2023 Budget Law.

From the other aspects of the measure, the criteria identified and the duration, the date of 31 December 2024 could be indicated, the audience that will actually be able to benefit from the transition from fixed to variable will depend. With one certainty, it won’t be for everyone. And, perhaps, not even for many. Considered the combination of the income threshold, the value and the duration of the loan.