Whether the interest on both borrowing money and the mortgage will remain as low in 2019 as it was in 2016 is currently difficult to say with certainty. However, there are several indications that the interest on loans will not rise for the time being. Various factors play a role in this.

The European Central Bank (ECB) will continue to actively determine interest rates in 2019 on loans, savings, mortgages and investments. Especially with saving, the interest that you got on your hard-earned savings came dangerously close to 0% and some banks even started calculating a negative savings interest. I will explain further in this article what that is exactly.

Interest on mortgages

The interest rate on new mortgages has risen slightly in recent months. However, this does not mean that this trend will continue, it is possible, but there is no substantial increase for the time being. The reason that interest rates on mortgages went up was probably due to the fact that a new American president was elected.

Regardless of the winner, the financial markets react to this, but these reactions are often not of long duration and the market stabilizes again after a few months. Gold became more expensive, interest rates rose slightly and the euro in a slight downward spiral. You can already see that the effects of the outcome of the US presidential election are fading away.

The European Central Bank keeps interest rates low

For several reasons, the ECB has every advantage in keeping current interest rates low. The plan is that a very low interest rate is good for the economy because not only is more money being spent, but more is being invested. Whether these reasons are sufficient to keep the economy going, however, remains to be seen.

After all, unquestionably bad loans are being bought and the money pressures are working overtime. It remains to be seen how long the ECB can continue to do this. but now the interest is low and you can profit from it. The inflation at the time of writing is 0.6%.

The interest on loans

The interest on borrowing money also remains on the low side. It should be noted that this interest does not come close to the interest that you have to pay on a mortgage.

With a 20-year fixed-rate mortgage, you are currently paying around 2.2% interest, while when applying for a revolving credit or a personal loan you should, in the best case scenario, assume an interest of around 4.5%. This is historically very low and has resulted in a true run on loans with low interest rates.

Refinancing expensive loans

While it is quite complicated to realize this when transferring a mortgage, due to penalty interest, notary attendance, etc., it is a piece of cake to do so when transferring expensive loans from the past. you simply request a quote for a new credit indicating that you want to transfer your current loans to a lower interest rate. Upon approval, your new lender takes all the work off your hands and ensures that all previous loans are repaid. So now you have a new credit with the lowest possible interest.