The MNB has revealed how many debtors are affected by the interest rate hike

He added that the government’s decision to maximize interest rates will affect not only housing loans but also free-to-use loans, as well as moratorium loans that meet the conditions. The interest rate stop gives banks and customers half a year to switch from variable to fixed rate loans.

There is a cost to fixing interest rates, “but whatever one loses on the port will surely be won at customs,” he said. In the long run, it is advisable to borrow securely at fixed interest rates, due to the global economic crises that occur from time to time.

The severe inflationary pressures around the world have an impact on interest rates, he said, adding that the Budapest interbank forint lending rate (BUBOR, the average lending rate for commercial banks) is an indicator against which floating-rate retail mortgages are compared. That figure was just over 2 percent last October, depending on whether it was 3, 6 or 12 months old. It now shows values ​​above 4 percent, so it’s a difference of roughly 2 percentage points. The measure can be used to talk about a 10-11 per cent reduction in the installment of a customer’s loan, depending on its maturity and loan amount, as described.

István Binder noted that the higher interest rate cannot return from June either, due to the fair banking rules introduced in 2015.

He also pointed out that the retail loan market could close the strongest year in its history, expanding by about 15 percent, mainly driven by housing loans. However, this means safe indebtedness, because the debt brake rules guarantee that customers will not be over-indebted, they indicated.

Prime Minister Viktor Orbán announced the introduction of a six-month retail interest rate stop on mortgage-based loans on the social media side last December. He said: the measure, which will take effect in early January, will set interest rates on mortgage loans at the end of October; which means that the February installment will be lower than before.

Cover image: Getty Images

Source: – Bank by

*The article has been translated based on the content of – Bank by If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!