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December is going to be a key month for the Euribor in which it could exceed the psychological level of 3%
December will continue with the upward trend in which the Euribor has been installed since the beginning of the year and we will most likely see the indicator exceed the psychological 3%. It so happens that those who have to review their mortgage with the December Euribor will do so on historically low values, especially those who do it annually since they will go from a Euribor of -0.502% to one that could exceed 3%, in total an increase of more than 350 percentage points, the largest in history. Carlos López from Euribor.com.es is alert to this situation. “Many mortgagees are not aware of the increase that awaits them in the next review, they should do the numbers as soon as possible and be prepared for the biggest increase they have ever seen in their monthly payment, which in some cases will be more than 45%.” The option in which many mortgagees have taken refuge has been to change their variable mortgage to a fixed one, although Euribor.com.es considers that it is already too late. “Little by little, the banks have been raising the interest on their fixed mortgages and even eliminating them from their commercial offer, so the only option to take refuge from the Euribor rises is through a mixed one, a product for which many are beginning to bet banks”. Despite the rise in interest on loans, the mortgage market is more alive than ever since the number of mortgages constituted on homes grew by 4% in September compared to the same month in 2021, to a total of 44,119 loans, the largest figure in a month of September since 2010 according to data released this Wednesday by the National Institute of Statistics (INE). For an average mortgage in Spain of 143,000 euros and a 24-year term, which is reviewed in December with a 1% Euribor, we would be talking about a possible increase in the quota of 235 euros per month. The Futur Finances economist and Euribor.com.es collaborator, estimates the impact of a 3% Euribor at the end of the year: “For an average mortgage, the installment would go from 527 euros to 762 euros, which implies an increase in family financial cost of 2,820 euros during 2023”.
Contact Contact name: Carlos López Contact description: Carlos López Contact telephone number: 666625624
