Homeowners and prospective buyers are taking another hit as interest rates on property loans continue to rise in Luxembourg.
The European Central Bank’s ongoing hike in key interest rates has had a knock-on effect, with the Luxembourg Central Bank (BCL) reporting a surge in both fixed and variable rates.
On average, households that took out a mortgage in March obtained a variable rate of 3.61%, compared to 3.53% in February.
Fixed rate loans experienced a similar trend, averaging at 3.93% in March compared to the previous month’s 3.77%. The BCL points out that rates can be “substantially higher” on long-term loans.
Finally, consumer loans with a duration of fewer than five years recorded a rate of 3.84% in March.
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