The variable interest rate on mortgages issued by Luxembourg banks reached 1.45% in December 2018 Shutterstock

The variable interest rate on mortgages issued by Luxembourg banks reached 1.45% in December 2018 Shutterstock

Meanwhile, fixed interest rates rose over the same period, from 1.82% to 1.86%, BCL said in publishing the figures on Monday.

The volume of new loans granted on variable rate mortgages reached €440m in December 2018, marking an increase of €193m on the previous month. Compared with December 2017, the volume of loans issued in new variable rate mortgages rose by 169m.

New fixed rate mortgage loan volumes reached €428m in December 2018, up €123m on the month before. Compared with December 2017, it marks a €65m increase.

The interest rate on consumer credit (with payment plans of between 1 and 5 years) reached 2.79%, while the volume of loans fell €7m to €15m, from November to December 2018.

According to European Central Bank figures, in December 2018 Luxembourg had among the lowest interest rates in the EU for household and non-financial corporation borrowing for house purchases at 1.68%. The lowest rates were found in. Finland (.88%), Portugal (1.21%), Slovakia (1.45%) and France (1.48%).