Hungarian government keeps mortgage interest cap in place after talks with banks

The Finance Ministry announced that talks with the Magyar Bankszövetség did not result in a solution that would assure borrowers that their mortgage payments would not jump sharply, so the interest-stop will stay in effect. Boda Nikoletta, the parliamentary state secretary, said the government held several negotiation rounds but could not design a scheme that protected borrowers from large payment hikes. Consequently, the cap that was supposed to end at the end of September will be maintained for now.

The issue was raised in parliament by Witzmann Mihály, who highlighted the risk of higher monthly repayments for borrowers if the cap were removed. Calculations by BiztosDöntés.hu suggested that ending the cap could raise payments by several thousand for a typical loan, though exact impacts vary by contract. The banking sector warned that an indefinite continuation of the cap could create sizable accounting losses, underscoring the complexity of finding a lasting resolution.