Change Mortgage on Budapest Property

[neilgarv]

I currently have a CHF mortgage for a property in Budapest. The bank have increased the interest rate on the mortgage from 6-7.5% (it`s a SVR mortgage not pegged to any base rate) a couple of weeks ago .This is despite the interest rate in Hungary going down and expected to decrease further in the coming months. Is this a decent rate for Hungary or could I potentially get a better rate than this?

 

[budapest]

It would depend on your personal circumstances, but I think it's unlikely that you'll find better.

Will you loose out if you pay back the mortgage now because of the CHF/HUF exchange rate? You can't get CHF mortgages anymore - only EUR and increasingly popular HUF mortgages, now that the base rate is down to 6%.

Mortgages are still expensive in Hungary. Even 7.5% sounds competitive. EUR mortgages will be at least 8% and HUF mortgages (at the moment) are closer to 10%! Hungarians don't typically like taking out large home loans. It's extremely difficult to get approval and the administrative costs and interest rates are incredibly high.