Interest rate hikes to hit variable mortgage holders as businesses lock in fixed rates

Fixed-rate mortgages remain attractive in Cyprus as a buffer against growing uncertainty over potential shifts in monetary policy. Banking executives said locking in an interest rate for a long period is currently a beneficial solution for people looking to take out a new mortgage without the stress of rising rates.

A potential interest rate hike in June—if confirmed by the European Central Bank (ECB) Governing Council on 10 June—will mainly affect specific categories of customers. It will hit...