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State Secretary: Mortgage rate freeze could save households HUF 30 billion

A government decision to freeze retail mortgage rates until the end of next June could save Hungarian households HUF 30 billion (EUR 81.3m).

State Secretary Csaba Dömötör said a government decision to freeze retail mortgage rates until the end of next June could save Hungarian households HUF 30 billion (EUR 81.3m).

The decision about the six-month freeze from January was announced by the prime minister on Wednesday. Prime Minister Viktor Orbán said the interest rates on retail mortgages will be frozen at their end-October levels, meaning that the monthly instalment for February will already be lower than previous ones. Dömötör said that around half a million Hungarians have floating-rate mortgages. Without the measure, accelerated rate rises from October could have added 23 percent, or an average HUF 11,000, to borrowers’ monthly instalments.

Photo credit: kormany.hu