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Saturday, October 16, 2021

Interest rates up. By how much will loan installments increase? The expert calculates

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The increase in interest rates will increase loan installments by as much as PLN 209 – according to calculations of the chief analyst of Expander, Jarosław Sadowski. The creditworthiness of people who want to get into debt will also change. The expert emphasizes that “flats are already quite expensive, so in some cases it will be important”.

The Monetary Policy Council at its one-day meeting on October 6 unexpectedly raised interest rates. The decisions of the Council affect the wallets of Poles. In the event of an increase in interest rates, borrowers can expect higher loan installments.

An increase in interest rates and the loan installment

Jarosław Sadowski from Expander Advisors notes that the higher installment may not appear immediately.

– Banks update mortgage loan installments every 3 months, but not always in calendar quarters. The changes will often appear only from January, but for some from November or December – he explains.

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He adds that the maximum allowable interest on consumer loans will increase from 7.2 percent. up to 8 percent

– The creditworthiness of a person who so far could count on PLN 300,000 will drop to approx. PLN 287,000, i.e. by approx. PLN 13,000. So this is not a big change that would be of significant importance, but it is worth remembering that flats are already quite expensive, so in some cases it will be important – he explains.

Sadowski’s calculations relate to 25-year mortgage loans granted recently with the current interest rate of 2.85%. Installments can go up from PLN 21 to even PLN 209.

People who took out a loan for PLN 100,000 currently pay PLN 466 every month. Now it will be PLN 21 more – the installment will increase to PLN 487. People who have borrowed PLN 400,000 and are currently paying around PLN 1,866 will have installments higher by PLN 83. Thus, they will reach the level of PLN 1,949. The largest increases in installments will affect people with the highest amount of debt. Borrowers indebted with one million zlotys will pay 209 zlotys more, and their installments will increase to 4,873 zlotys.

Changes in mortgage installmentsExpander

Interest rates and installments of cash loans

The installments of cash loans will also change. Jarosław Sadowski presents calculations for liabilities with different repayment periods.

The installments of loans granted for a year will not increase at all or minimally. There will be no changes in the case of loans for PLN 1,000 (installment PLN 87). Loan installments for two, three and four thousand zlotys will increase by one zloty. The loan installment for five thousand zlotys will increase by two zlotys – up to PLN 435.

The largest increases will affect loans with a 60-month repayment period of PLN 60,000 – people currently paying installments of PLN 1194 will pay 23 PLN more.

Changes in cash loan installmentsExpander



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