This climbing Euribor continues without a ceiling. indicator on which the vast majority depend mortgage variable rate Daily rate exceeded this Monday in Spain 3% barrier 3,057% for the first time in over a decade, the highest level since December 2008. So far in December, the index stands at 2,884%, slightly above 2,828% in November. bad news for variable rate mortgagewith this, interanual variation still very large, approx. 3,386 points in what percentages dues it’s time to review with this month’s index steep ascent.
for a mortgage 150.000 Euros in 24 years with a kind Euribor plus 1%It means a switch from a fee of 552 euros to 843 euros, that is, 291 Euro more per month and 3,492 Euros more per year. for 300.000 Euro loan With the same features, the increase will increase from 1,105 euros to 1,686 euros: 581 Euro more per month and 6,972 euros more per year.
ruthless and incomparable rise of euribor getting more expensive all year Variable rate mortgage installments (not fixed rate installments, they are unaffected). But worst for the mortgagee is coming. As of last November, revisions will be made as follows: will touch and exceed 3% (plus the difference signed when the loan agreement was signed), very strong increases to continue for about a year. The largest increases will be concentrated in the region. first term your next exercise
Although there are loans for the purchase of variable rate housing, they are reviewed every six months, most do once a year. Quotas rise if Euribor higher than a year ago on the month that serves as a reference for reviewing the loan. The reason why the biggest increases start to happen in October and will increase rapidly from November is because normally reference euribor two months ago.
In other words, a variable rate mortgage October reviewed with august index (which was 1,747 points percent over August 2021), those in November did the same as September (2,725 points higher), December ones do this with October (3,102 points), What happens in January will do the same with November ( 3.32 points mentioned) and current December to February. To put it in perspective, quota revisions come in March and July It was made in Euribor with differences between years. 0.028 and 0.768 pointsIt was 1,336 points in August and 1,483 points in September.
unprecedented climbs
Current year-to-year differences unusually high because euribor end of last year in the region record lows (-0.502% in December), now around 2.8% monthly average. faster loading Since the creation of the index in 1999. Experts, higher increases in mortgage installments next months.
will begin slowly decrease around summer This comes and is more pronounced in October and November, when Euribor’s said inter-year differences decrease compared to the current levels of the index. that’s what explains State encouraged banking to close contract help most vulnerable mortgageIt will come into effect on 1 January.
Euribor gauge average interest to which banks lend mutual money. Its sharp rise responds to the fact that the beings are trying to do it. to wait the movements The rates that the European Central Bank expects to apply (European Central Bank). The monetary authority, therefore, increased them. two and a half points announced additional increases so far this year and next year with a stronger tone than the market expected.
Source: Informacion
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