Floating interest rate means a variable mortgage interest rate that varies according to PRIBOR (Prague Interbank Offered Rate) or another reference rate agreed between the bank and the client.
Floating mortgages are known as adjustable rate mortgages. In this case, the client is not guaranteed the same interest rate or monthly payment compared to a fixed rate. The interest rate changes according to the current situation on the financial market, which in turn depends on the interest rates announced by the Czech National Bank.
What is a floating mortgage?
Did you know that the float rate can change up and down every month?