In difficult times it is good to know there is something you can rely on. Due to the monetary policy of the European Central Bank (ECB) and its artificially low interest rates
, borrowing money has effectively become cheaper for consumers. With mortgage rates reaching historic low levels, many consider to lock in their mortgage, safe in the knowledge their mortgage fees will not increase - despite international or economic developments.
Each European country, however, has its own dynamics on the mortgage market
as there are many differences on taxation, rules on consumer protection and how mortgages are provided. The Netherlands, for example, has one of the highest mortgage debts in Europe
whilst Spain tries to deregulate its outstanding mortgage lending
. Additionally, 10-year deals require a large deposit and tend to be favorable for buyers who know they are going to stay in the same house for the next decade. For young people then, locking into these long-term deals may look like a risk.