Mortgage rates go up

Mortgage rates in Cyprus rose in September 2014, denying expectations for an access of the households to cheaper money.

According to new European Central Bank data, mortgage rates in Cyprus rose to 4.89% in September from 4.65% in August and 5.07% in September 2013.

This increase reflects the liquidity pressures and the banking risks accumulated in the financial system.

Bankers and borrowers hope that rates will decline by the end of the year, partly due to the positive results of the stress tests.

For the time being, mortgage rates are by far the highest in the euro area.

High interest rates are also registered in Malta (3.94%), in Portugal (3.99%) and Slovakia (3.57%).

Lowest mortgage rates are observed in Finland (1.83%) and Luxembourg (2.04%).

In the eurozone, the mortgage rate fell to 2.97% from 3.04%.

Business loans in Cyprus are also the highest.

The average interest rate on business loans decreased to 5.83% against 5.90% in the previous month and 6.26% in September 2013, but remained the highest in the eurozone.

High business rates are also registered in Greece (5.32%), Malta (4.35%) and Portugal (4.05%) while the lowest in Finland (1.90%) and Luxembourg (2.12%).

In the eurozone, the interest rate for business loans fell to 3.14% from 3.15%.

Deposit rates

Deposit rates have not changed.

According to ECB data, interest rates for new deposits in Cyprus in September amounted to 2.59% from 2.60% in August and 2.20% in September 2013.

In Greece, the cost of deposits declined to 2.07% from 2.12% and is the second highest in the eurozone.

In the Netherlands, the deposit rates are at 1.99%, in France 1.68% and in Portugal 1.33%.

In the eurozone, the cost of deposits declined to 1.20% from 1.23%.

The lowest deposit rates are in Luxembourg (0.30%), Latvia (0.30%), Estonia (0.37%), Germany (0.52%) and Austria (0.55%).