You are currently viewing Faced with rising energy costs, the banks are making a move: for households in difficulty, the repayment of the mortgage can be reduced

Faced with rising energy costs, the banks are making a move: for households in difficulty, the repayment of the mortgage can be reduced

  • Post category:Economy News
  • Reading time:2 mins read

Households facing financial difficulties due to an exceptionally high energy bill will temporarily only have to pay the interest on their mortgage, write De Standaard and Het Nieuwsblad on Wednesday.

Persons who request it may postponing the repayment of the capital and temporarily paying only the interest. For this purpose, the creditor will extend the term of the loan. For example, if you borrowed €200,000 at a fixed interest rate of 1.5%, you would still have to pay interest of €216 per month. But the repayment of the capital of €583.85 will be suspended, as indicated From Standaard in its columns.

However, this relief will not be automatic, you will have to request it from your bank. It is not yet known which families will be affected by this gesture. At present, it remains difficult to predict the duration of the energy crisis and therefore of this measure.

Officials from major Belgian banks met on Tuesday to hammer out a plan to give families a break. They point out, however, that the solution cannot be the same as for the coronavirus pandemic. At the time, businesses and stores had to remain closed and the duration of the crisis could reasonably be estimated at its worst, which was then estimated at six months.

If the banks do not venture this time to predict how long the energy crisis will last, they do not exclude a difficult period of two to three years. Due to this uncertainty, they will work on the basis of intermediate assessments, with the starting idea that the families concerned must be able to spend the winter.