Novinky.cz has come out with evidence detailing the fact that the era of hyper-cheap home mortgages is coming to an end. It reports that after the Czech National Bank raised its main interest rates in November, banks have begun passing on the increased costs to its customers in the form of 10 bps – 30 bps hikes in new mortgage loans. The result for many consumers is installments that are hundreds of crowns more expensive. And the server warns that further rate hikes can be expected, with basic rates from the central bank rising to as much as 3 percent within two years from their current 0.5 percent. “The era of cheap mortgages is coming slowly to an end,” says BH Securities’ Štěpán Křeček. “People who take out mortgages now should consider fixed rates for the longest possible period. Even if interest rates rise, they’re still on a very low level from a historical perspective.”
