this rise interest rates As the first result announced by the European Central Bank (ECB), a significant increase euribor up to a yearwhich are the main reference for these loans and are currently acting at a daily rate of over 2% and increase in wages This must be paid by families who have signed a variable rate mortgage. The effect of the increase in interest rates is obvious. And what’s more, since last April, the one-year Euribor has emerged from the negative ground it has been in for six years.
Although the rise is common, not all variable mortgages have the same effectIdealista experts warn that it depends on the year the contract was made and the amount already paid. The vast majority of variable mortgages signed in Spain use the “French” repayment system, where the monthly installment payable is fixed for 12 months, and in the first years of the loan’s life, most of the installments. interest payment and the remainder to principal payment.
More time, more capital
However, as time progresses, these factors reverse. practically only capital is depreciated at the end of the loan. This is why the effect of the increase in Euribor will not be the same (or even similar) in the case of a mortgage contract in 2021 compared to the contract in 2005.
Idealistic experts have made a theoretical calculation of the additional fee that families who have to update their loans with the current Euribor will have to pay, based on the year they took out the mortgage. To do this, they used a mortgage of EUR 150,000 on average at Euribor + 1.5% interest and 25 years, assuming no early repayments.
For example, those who signed a variable mortgage contract in August 2021, monthly salary increase of 118 euros (€1,421 per year), reduced to 104 euros per month (1,245 euros per year) if hired in 2018 and to just 44 euros per month (528 per year) if hired in 2005. .
In addition, to calculate the real effect of the increase in the indicator, substantial fixed-rate mortgages Signed in Spain in recent years, they have become the most requested to hedge against future increases in currency prices.