After more than six years of negative Euribor (especially since January 2016, when the month ended at 0.042%), this indicator once again crossed zero this April 2022, and increased by 101.03% in one year: From -0.484 recorded in the same month of 2021 to the current 0.005% in the absence of data for this Friday, which the Bank of Spain will release next week. It also increased by 0.242 points in just one month, after -0.237% in February 2022.
The reason for this huge increase lies in the positive daily data posted this month by the variable mortgage reference index, the highest rate since October 15, 2015, when it hit the same figure of 0.134% on Monday, 25th. “This April is for the first time in six years. positive monthly mean of Euribor confirming the change in trend. Since the start of the war in Ukraine more than 60 days ago, we have seen very volatile movements”, analyzes Simone Colombelli, Mortgages manager at iAhorro.
What are the consequences of this rise?
who has a contract Variable mortgage of €150,000 over 30 years With the Euribor + 0.99% differential and you have to do your annual review this April, you will see how the amount you will pay on your mortgage will increase by 32 euros per month over the next twelve months or what is the same. , 384 euros per year: you will pay 481.18 euros for the previous 449.18 euros.
in case 300.000 euro housing loan in 30 years, Also, with a margin of Euribor + 0.99%, for 898.36 you paid in April 2021, the monthly fee from this month will be 962.05 Euros. In this case, the increase would be 63.66 Euros per month and 763.92 Euros per year.
With regard to fixed mortgages, organizations have made various adjustments to increase interest rates. However, as Colombelli assures, “unless all banks raise fixed rates uniformly, no real change will be noticed and there are some organizations that do not plan to do this”. “There have been adjustments in recent weeks, especially March, and there will probably be some more, but unless Euribor rises any further, the next changes will not be decisive in the short term. This can only happen if the bank wants to implement a commercial strategy, that is, if it bets on another product to position itself internally or to differentiate itself from other organizations,” explains the mortgage manager at iAhorro.
What is the forecast for Euribor for the coming months?
Looking back, a spokesperson for the mortgage comparison company said, “Historically, there has never been more than half a point difference between the year’s highs and lows in Euribor; Not even in 2020. And if we go back more years, the trend doesn’t change,” he adds, so this year we’ve already seen a difference of almost 0.5 percentage points between the January data and the data for it. April, Y It is very difficult to reach 0.5% at the end of the year. (as some experts have predicted) when to reach some point of elevation in the entire exercise”.
Moreover, Simone Colombelli He assures that something similar to what happened with the coronavirus is happening: “We have already experienced the most abrupt changes in Euribor and we can reach a certain stability. We are likely to see more sustainable, more stable movements from now on.”
Yes, the director of iAhorro Mortgages is cautious and explains that this progress will depend heavily on the bank’s decisions. European Central Bank (ECB). For now, its president, Christine Lagarde, has delayed adjustment for the rate hike by the agency to at least the third quarter of the year, despite inflation being around 8.4% this month, which is still a very high figure. Although lower than in March.