Euribor rose one point per month, the biggest increase in its history: already in January 2009 values

Regarding the increase in this reference index for variable mortgages, this month is the highest in history. After closing August 2022 at 1.249, we see that it has risen 0.984 points in just 30 days. “It looks like we’re seeing the same curve pointing to Euribor between 2009 and 2008, albeit reversed,” says Simone Colombelli, iAhorro’s director of mortgages. However, a spokesperson for the mortgage comparator assures that “no need to be alarmed” because “an Euribor of around 2% is normal.”

Of course, Colombelli prefers to be cautious when making any predictions because “you’ve seen what you’ve seen, it’s almost impossible to get it right”, but he says it will “probably get into the real estate business.” difficult moment albeit in a few months don’t think it will be “dramatic”. “What worries us is that it reaches a maximum of 5%, as in 2008. But although this will depend on the conflict between Russia and Ukraine and what will happen to the macroeconomic situation, at that time the banking sector gave mortgages very easily, and today the solvency of citizens to issue mortgages is much higher than at the beginning, so we can expect the impact to be less, explains the expert. .

About 400 euros more per month for variable mortgage

This rise affects not only the financial market, but also the citizens. Those who make variable mortgage contracts and have to do an annual review of their fees this month will see how it goes. rises to 389.43 euros per month if the current mortgage loan is 300,000 euros (average of mortgages in Spain’s major cities) and half is 194.72 euros, if the money issued by the bank is 150,000 euros.

So much so that those who have signed a variable mortgage contract with a 30-year maturity of 150.000 Euro with a difference of 0.99% + Euribor and have to make an annual review this month will see how their mortgage payments are from 448.65 Euros per month. As of this review, it’s 643.37 euros. This means an increase 2,336.64 Euros per year. If the mortgage amount rises to 300,000 Euros under the same conditions, the installment amount will increase from 897.31 Euros to 1,286.74 Euros, ie the annual increase is 4,673.16 Euros.

There are still good conditions in the market

“It’s still a good time to buy a house and you can still find good deals on the market; yes, as long as all of them are well studied and a comparison is made between those issued by different banks”, Simone Colombelli qualifies. They’re still signing mortgages at a flat rate of less than 2 percent these months from mortgage comparator iAhorro, “excellent conditions given the current trend,” explains the mortgage director. These conditions, yes, are not offered by all banks, but they can be found by doing a good search. Of course, he warns Colombelli, “As of 3%, it can already be considered a slightly worse fixed mortgage”.

Regarding variable mortgages, what the iAhorro mortgage director emphasizes is this:We’ve even seen variable mortgages with margins below 0.30%” and “a variant with a spread above 0.99% is fully curable”, therefore, a variable loan contracted with a spread equal to or higher than this can replace a good fixed one or a mixed variant, as well as another variable. . And mixed mortgages are now a good option: “The first portion of mixed mortgages managed at a fixed rate is normally less than 2%, which is a good rate to account for the first 10-15 years of mortgage. Then comes the variable portion, but the mortgagee continues with that loan. He will be able to decide whether to pay to replace or replace”, Colombelli concludes.