The Payment Burden Increases By Up To 16 Thousand Per Month
The Payment Burden:
The Mortgage Payment Burden Has Increased By An Average Of 15 to 16 Thousand Per Month For The Last Two Years, According To a New Analysis By the Central Bank.
Central Bank:
The Central Bank Examined The Changes In the Payment Burden Of All New Borrowers From January 2021 Up to And Including August 2022 at the Request of The Parliamentary Budget Committee and Submitted a Memorandum With The Results to The Committee Last Week. The Core First Reported. The Central Bank Has Raised Key Interest Rates Nine Times in a Row, They Now Stand at 5.75%.
Low Disposable Income:
The Memorandum States That The Average Payment Burden Of Those With a Disposable Income of Less Than 750,000 was Almost 160,000 ISK Per month Last August. For Those Whose Income is Higher than 750 Thousand ISK, the Average Payment Burden is Almost 200 Thousand. About 45% of The Higher income Group Has a Debt Burden Of Over 200,000.
The Mean Of The Two Separate Groups Was:
The Central Bank Says That Since The Higher Income Group Generally Owes More Than the Lower Income Group, it Would Have Been Expected That Their Debt Durden Would Have Increased More When Interest Rates Rose. However, The Central Bank's Analysis Has Revealed That the Increase Was Similar on Average for Both Income Groups, or Between 15 and 16 Thousand Per Month, Which is Close to 175 Thousand Per Year.
The Right To Dowry Decreased To 20-25 Percent:
This is Explained By The Fact That The Higher-Income Group is More Likely to Take Unindexed Loans at Fixed Interest Rates. The Central Bank Says That the Payment Burden Has Decreased for 20-25%, to a Greater Extent for the Higher Income Group than For The Lower Income Group.
