Bad news for the mortgagee. decision European Central Bank (ECB) increase the official currency price by 0.5% Accelerates the rise recorded to fight inflation euribor This will translate into a significant increase in monthly installments for those with variable rate loans. Especially between 2012-2017, it is a rise that can put those who contract their loans with the highest margin into difficulties.
The increase, approved by the financial auditor, caused the benchmark most mortgages referenced to climb this Friday. up to 1.2% daily ratewhich places monthly average July as a reference in the review of interests 0.985% and everything indicates that it will exceed 1% by the end of the month. If you take into account that Euribor is currently -0.491 last year, this represents an increase of almost one and a half points in less than a year.
In cash, this means: mortgage in Alicantemonthly installments where the average amount requested is EUR 107,000 and the payback period is 25 years and there is a difference of 1% From 383 to 459 Euros. a difference 76 euros or, what is the same, 912 euros per year this is already a major hole in many households’ budgets.
An even more burdensome increase in expenditure, if one takes into account that it must be added to the expenditure. rising cost of fuel, energy and other products usually make up the average household’s shopping cart and 10.4% per year in the province.
In this sense, the situation can be particularly complex for: Mortgaged between 2012-2017, when the applied differentials are the highest, that is, they already pay higher-than-average wages. In this sense, from the banking users association till the end I recommend it to anyone who has this problem. renegotiate the terms with your bank.
Although it is predicted that this increase in the cost of financing will suppress the contraction of new loans, at the moment the latest official statistics do not yet include the effects of the increase and reflect a significant growth in loan utilization. Thus, they became official during the month of May. 1,920 new mortgages in the provincerepresenting an increase of 30% compared to the same period of the previous year and the highest amount in more than ten years, especially since September 2010.
So far this year, the number of operations is already 7,920, for the total amount 837 million euros, 23% more So last year.
In this sense, some of this increase should be attributed to the progress in the home purchase decision, which creates the prospect of more expensive loans. Although businesses have started to make this method more expensive to opt for floating rates, they will also be more profitable from now on, something that has also turned into a record for fixed rate mortgage contracts that reached 73% of the total in the month mentioned above.
Source: Informacion
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