The Luxembourg Central Bank (BCL) has noted little change in mortgage rates negotiated in March, with the outlook offering buyers little improvement.
According to the BCL, new contracts signed in March brought no relief in terms of borrowing conditions. Variable rates, which remain very common in the Grand Duchy, stayed stable for individuals at 3.07% in March – unchanged from the previous month. For a €700,000 mortgage spread over 25 years, this variable rate translates into monthly repayments of €3,345.
Fixed rates fell slightly but continue to hover at very high levels. Buyers secured an average rate of 3.79% for mortgages over ten years, only a marginal improvement from February's 3.85%. On a €700,000 loan over 25 years, this fixed rate equates to average monthly repayments of approximately €3,614.
Consumer loan rates also remained relatively stable. In March, the BCL recorded an average negotiated rate of around 4.08% for loans with a term of less than five years.
