He Euribor rises today, but los mortgaged They are already toasting for one reduction in the share from his mortgage in the renewal of mayo which in some cases can be up to 400 eurosWith ten days left in the month, the monthly average of the indicator to which most mortgages refer in Spain rises to 3,660% and moves away from the 3,862% of a year ago, which makes the fifth month of the year the one of the great reduction of the mortgagesThis is also a small relief for mortgage holders who have a variable loan – the most affected – since it will translate into a saving for their pockets. Let us remember that in December 2021 the Euribor was still at negative values and that, from then on, it began to rise very abruptly, causing these variable rate mortgage holders to suffer increases in their monthly payments of up to 600 euros per month depending on the amount of the loan.
In April, mortgage holders in Spain already began to see the light at the end of the tunnel with a small reduction (4 euros per month). Now the Euribor remains stableso we will have to be alert to the possible interest rate cut The European Central Bank (ECB) has announced the 6th of June, as well as the change in the trend of the Euribor. In fact, according to the latest analysis by Rastreator, two out of 10 Spaniards who have not yet purchased a home are waiting for rates to fall in order to take out a mortgage with better conditions.
Sergio Carbajal, head of mortgages at Rastreator, “the variable mortgages have taken a small leap in recent weeks” and have come to represent 6% of the contracts in the mortgage comparator so far in May. However, given the Euribor trendlas Fixed and mixed mortgages They continue to lead the market with a total of 65% and 29% of operations respectively, since these modalities, especially the mixed ones, guarantee a Fixed TIN For the first few years, the rate is 2.25%, while for fixed-rate mortgages, this interest rate can be found in our comparison tool below 3%.
How much will your mortgage be reduced at the annual review in May?
May so far fulfills the script of good news for the mortgaged and there are customers who will notice a reduction of more than 400 euros in their fees. Who are they? According to iAhorro calculations, if we take the case of a person with a variable mortgage of 150,000 euros over 30 years, with a differential of 0.99% plus Euribor and who now has to do their annual review, will save 18.09 euros per month, a total of 217 euros per year. If the amount of the mortgage were to increase to 300,000 euros, the reduction this year would be 36.18 euros per month or 434 euros per year because the payment would go from 1,518.73 euros in 2023 to 1,509.97 euros per month from this revision.
It is true that the reviewsin addition to annuals, can be semiannual or quarterly, although the latter are not common. Therefore, if we take the same mortgage as in the previous example, but with a semi-annual review instead of an annual one, in the case of the 150,000 euro mortgage the monthly saving is 33.17 euros – 199 euros per semester. Likewise, if the amount of the mortgage were 300,000 euros, the reduction in the monthly payment would double: more than 66 euros per month, a total of 398 euros per year.
What is the Euribor?
Euribor is the acronym of the European Interbank Offered Rate, by its definition in English European Interbank Offered RateThat is, it refers to the amount that one European bank charges another for lending it money.
How is the Euribor calculated?
Of the calculation of the Euribor is in charge of the European Monetary Markets Institute (EMMI, the European Money Markets Institute). To do this, it uses a ‘panel of banks’, made up of 19 different banks, which report every day at 10.45 am on the interest rate at which they are willing to lend money to other banks in the Eurozone. Using this data and eliminating the highest 15% and the lowest 15%, the average is calculated. The result, which is rounded to three decimal places, is published at 11 am. In Spain, the Bank of Spain and the BOE collect the information and update and publish it daily.
Source: www.lainformacion.com
