This might be one reason why interest rates are typically not static in Europe. They have a static interest margin, though. The "weird" thing is that the interest margin is low when the economy is doing well but high when the economy is not doing well (e.g now), but the Euribor rates the inverse of that.
In other words, someone who took a mortgage 4 or 5 years ago are probably now paying close to zero interest, and anyone who takes a new mortgage now has to pay close to 1.5% interest (which is almost completely composed of the margin). And when/if the economy picks up in 3 to 4 years, that person with the 1.5% margin is going to be paying a lot of interest..
It's also very difficult to get a mortgage with a fixed interest at least in Finland. Not unheard of, of course, but the terms are likely pretty bad.
In other words, someone who took a mortgage 4 or 5 years ago are probably now paying close to zero interest, and anyone who takes a new mortgage now has to pay close to 1.5% interest (which is almost completely composed of the margin). And when/if the economy picks up in 3 to 4 years, that person with the 1.5% margin is going to be paying a lot of interest..
It's also very difficult to get a mortgage with a fixed interest at least in Finland. Not unheard of, of course, but the terms are likely pretty bad.