Mortgage interest rates in Europe soared in 2022 and remained elevated in the following two years. In many countries, this resulted in mortgage interest rates across the region more than doubling. In the fourth quarter of 2024, the average mortgage interest rate in the UK stood at *** percent. Belgium had the lowest rate, at **** percent, while Poland had the highest, at *** percent. Why did mortgage interest rates increase? Mortgage rates have risen as a result of the European Central Bank (ECB) interest rate increase. The ECB increased its interest rates to tackle inflation. As inflation calms, the ECB is expected to cut rates, which allows mortgage lenders to reduce mortgage interest rates. What is the impact of interest rates on home buying? Lower interest rates make taking out a housing loan more affordable, and thus, encourage home buying. That can be seen in many countries across Europe: In France, the number of residential properties sold rose in the years leading up to 2021, and fell as interest rates increased. The number of houses sold in the UK followed a similar trend.

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The average mortgage interest rate decreased in nearly every country in Europe between 2012 and 2021, followed by an increase in response to inflation. In the fourth quarter of 2024, Poland, Hungary, and Romania topped the ranking as the countries with the highest mortgage interest rates in Europe. Conversely, Belgium, Spain, and Italy displayed the lowest interest rates. The UK, which is the country with the largest value of mortgages outstanding, had an interest rate of **** percent.

In 2024, the average mortgage rates in European countries varied from *** percent in Bulgaria to over nine percent in Hungary. The mortgage rate for a home purchase is decided depending on the individual situation of the homebuyer, their credit history, and income, but they also follow macro determinants including the base lending rate, inflation, economic growth, and the health of the housing market. Starts, completions and prices The supply of new housing varies in different countries in Europe. In 2023, the number of new housing units completed per 1,000 citizens was between *** and seven, with this number varying greatly in different countries. Ireland and Poland were among the countries with most completed housing units. When it comes to housing starts, Ireland tops the ranking. The average transaction price of a new dwelling in 2023 ranged anywhere from roughly ***** euros per square meter to under ***** euros per square meter. Housing stock As the most populous country in Europe, Germany has the largest housing stock. Comparing the number of housing units per 1,000 citizens is an easy way to identify housing shortages. In Greece and the UK, for example, the number of dwellings per 1,000 citizens measured less than ***, compared to Bulgaria and Spain, where it was around ***.

This dataset provides values for 30 YEAR MORTGAGE RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

This dataset provides values for MORTGAGE RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Poland, Croatia, and Romania were the countries with the highest coverage ratio of non-performing mortgage loans to households in the second quarter of 2023. In Poland, the coverage ratio was almost 68 percent, while in the Netherlands, which was one of the countries with the lowest share of non-performing mortgages, this share was 11.4 percent. The coverage ratio measures the share of non-performing loans covered by provisions and is calculated as the total specific allowances for loans and leases divided by the total gross impaired loans and debt securities.

The mortgage credit interest rate is the average interest rate on mortgage loan products offered to individuals and households by the commercial banks in the country. The mortgage credit is a loan used to finance the purchase of real estate. The table shows the latest available data from the national authorities as well as the values from three months ago and one year ago. The data are updated continuously.

The average for 2023 based on 17 countries was 8.37 percent. The highest value was in Ukraine: 22.11 percent and the lowest value was in Switzerland: 2.86 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The value of the loan portfolio of banks to households was expected to grow the most in Hungary and Bulgaria in 2025 and 2026. Meanwhile, bank loans to households in Germany, Italy, and France were forecast to have low growth rates, staying under *** percent in 2025. Overall, the total value of the household loans market in the EU as a whole is expected to keep growing in the next few years.

Bank Lending Rate In the Euro Area decreased to 3.62 percent in July from 3.73 percent in June of 2025. This dataset provides - Euro Area Bank Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

This dataset provides values for 15 YEAR MORTGAGE RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The Europe Home Mortgage Finance Market Report is Segmented by Loan Purpose (Purchase, Home Improvement/Renovation, and More), Provider (Banks, Housing Finance Companies, Others), Interest Rates (Fixed Interest Rates, Floating Interest Rates), Loan Tenure (≤ 10 Years, 11-20 Years, More Than 20 Years), and Country (United Kingdom, Germany, France, Spain, and More). The Market Forecasts are Provided in Terms of Value (USD).

The mortgage prevalence among homeowners in the 30 European countries in the ranking varied widely in 2024. About ** percent of the total population in Norway was a homeowner, with **** percent paying out a mortgage loan. Conversely, only *** percent of households in Romania had a mortgage, with nearly **** percent being homeowners. Meanwhile, an average of **** percent of the total population within the EU-27 was an owner-occupant with a mortgage or housing loan. Homeownership depends on multiple factors, such as housing policy, the macroeconomic situation, the state of the housing sector, and the availability of finance. Countries with more developed mortgage markets tend to have lower mortgage interest rates.

As of June 2025, Ireland was the Eurozone country with the highest interest rate for short-term loans, amounting to 4.86 percent. Meanwhile, the Baltic countries had the highest interest rates for loans with long-term maturities, with Latvia having a rate for those loans of 7.4 percent. Meanwhile, the composite cost for short-term loans in the Netherlands amounted to 2.97 percent, which was the lowest rate in the Eurozone, while the interest rate of long-term loans in Malta was 1.39 percent.

The benchmark interest rate In the Euro Area was last recorded at 2.15 percent. This dataset provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The average for 2020 based on 13 countries was 3.71 interest rate points. The highest value was in Ukraine: 8.21 interest rate points and the lowest value was in Hungary: 1.49 interest rate points. The indicator is available from 1980 to 2020. Below is a chart for all countries where data are available.

Key information about Germany Long Term Interest Rate

• Germany Long Term Interest Rate: Month Avg: Germany: ECB Harmonised was reported at 2.41 % pa in Feb 2025, compared with 2.48 % pa in the previous month.
• Germany Long Term Interest Rate data is updated monthly, available from Jan 1990 to Feb 2025.
• The data reached an all-time high of 9.09 % pa in Oct 1990 and a record low of -0.65 % pa in Aug 2019.
• Long Term Interest Rate is reported by reported by CEIC Data.

• In the latest reports, Germany Short Term Interest Rate: Month End: EURIBOR: 3 Months was reported at -0.57 % pa in Nov 2021.
• The cash rate (Policy Rate: Month End: Main Refinancing Operations) was set at 2.90 % pa in Feb 2025.
• Germany Exchange Rate against USD averaged 0.92 (USD/EUR) in Jun 2023.