Following the publication of that article, more readers have come forward to share their own stories and how they are coping with the situation. Here are some of these testimonials:
A young family with a child that bought a house a few years ago with a variable rate mortgage that increased from 1.4% to 4.8% told RTL that because of the rise in interest rates, they have had to decide against going on a holiday and are also hesitant to go to restaurants. They fear that interest rates will rise again.
“I’m hoping that my father will sell his house soon and support us a little. We’re barely getting by thanks to some family support.”
One man explained to RTL that he rents his flat to a tenant. Thanks to the rent, he was able to pay the full monthly loan instalments, but as interest rates have risen dramatically, he has to pay the difference out of his own pocket, which he will not be able to do for much longer.
“I have to either sell my property or find a new tenant prepared to pay the real price, but I don’t want to do that.”
A woman told RTL about how she struggles with the prospect of an additional €1,000 just disappearing from her bank account every month. In 2018, she took out a variable rate loan for a flat at 1.4%, with monthly payments of €1,925 at the time. On 1 June 2023, the rate will rise to 4.9%, meaning monthly payments will increase to €2,941 every month.
“Our household consists of three people, and the future is a bit scary. We’ll see what happens in the next few months; if things don’t improve, we’ll have to sell our flat and find another place to rent. Renting is cheaper than paying back a loan.”
A solution that appears to be just as problematic in the end, given that rents in Luxembourg are also soaring, according to experts.
Related:
“Worse than a catastrophe": Non-profit calls for government to act on housing crisis
