In the absence of data for the last day of the month, euribor aim to close May monthly average approx. 3.86%highest level since November 2008 and that’s an increase of 0.1 percentage point compared to April, and more importantly, 3.57 points Compared to May of last year. despite rate of rise index to which most of the loans belong to buy living place inside Spain This slow downit still means something steep climb between mortgage installment For those who have to examine the loan interest with the data of May.
Mortgage installments, hence, Euribor higher than a year ago on the month that serves as a reference for reviewing the loan. May level means mortgage 140,000 Euros in 25 years and Euribor’s interest plus 1% of what would need to be revised with new data (normally updated in July) 260 Euro more per month (up to 806 Euros) and 3,130 euros more per year (up to 9,672 Euros). for credit 300.000 Euros with the same characteristics, there will be increase 559 Euros per month and 6,708 Euros per yearup to 1,729 and 20,748 Euros respectively.
Euribor, which theoretically measures the average rate banks charge each other to borrow money, since the beginning of last year unprecedented rise The index tries to forecast the actions of the European Central Bank (ECB), which raised its reference rates from 0% to 3.75% after raising the reference rates to combat inflation. seven times since July 11 years later without increasing. Monetary authority still gave signs that it would approve some additional increasebut also end of loading cycle near. The market waits alone Two more than 0.25 points In June and July, the percentage therefore stabilizes, as predictably Euribor. will exceed 4% in the near future.
rising quotas
Despite this slowdown in the rate of increase, quota increases will continue to be evident will start predictably in the coming months soften inside second half of the year. This is because the review of loans is based on the level of Euribor compared to the same month of the previous year. Like this higher variances from year to year -more than three points- started to be noticed last November (September is the month Euribor is used as the reference) and it will be until mid-year when the index will start to compare with the highs at the end of last year, and therefore the quota increases will increase. smoother
“Euribor curve straightening outanyone. The most logical would be stabilization we see throughout last four months This reference index of variable mortgages is also maintained throughout the period. next months“, comparator and mortgage advisor approved iSavings. ” mortgaged they have problems What to do to get by request an appointment for you as soon as possible bank examine possible solutions. In general, organizations are open to: restructuring debt percent of their customers if they seek help before defaulting
The rise in official and market interest rates is hurting not only those who already have mortgages, but also those who take out new loans to buy a home. HE an average man between new mortgages stopped 3,54% In March, the latest data available. This represents the most expensive rate since April 2012 and a strong increase from 1.54% twelve months ago.