Interest rates

The end of cheap mortgages? Some banks have raised their interest rates

24. Feb 2022 at 11:51 I Quality Content

Observers expect other financial institutions to follow suit.

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Three banks in Slovakia have decided to raise interest rates on mortgages.

One of the reasons given is an expected rate hike by the European Central Bank (ECB), which will respond to the extremely high rate of inflation.

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Observers expect other banks active in Slovakia to follow soon.

Several factors influence the decision

The VÚB was the first to announce that it would raise prices by 0.2 percentage points for all bindings from March 7 business newspaper Denník E reported.

As a result, the interest rate for a three-year fix will increase from 0.89% to 1.09%. Rates will also be higher for 1-year, 4-year, 5-year and 10-year fixing.

“Given the situation on the financial markets, signals from the ECB and other factors such as high inflation, we have decided to change the rates,” said Martin Techman of VÚB, quoted by the business magazine Index.

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