Belgian banks raise interest rates on mortgage loans

Belgium's largest bank and market leader BNP Paribas Fortis this month increased the interest rate on mortgage loans by 10 basis points, raising the official rate on loans with a fixed interest rate for the first time since July 2015. This brings the rate of a loan with a fixed interest rate over 20 years up to 2.9%, writes De Tijd. ING and KBC are also increasing their rates, although less drastically.

The newspaper points to the rise in long-term interest rates and rising pressure on bank profitability as possible causes for the sharp increase.

It is too early to say whether the increase in interest rates on mortgage loans is sustainable, according to De Tijd.