The rise in the Euribor follows its trend and will close May at 3.86%, according to calculations by the iAhorro portal in the absence of official confirmation. It is one tenth more than the previous month, the same rate that it already registered in March. Whoever has to review the mortgage, in any case, who knows that a good bite awaits them in their pocket, of 3,000 euros per year in a loan of 150,000 euros.
This increase confirms that the rate advances one tenth per month, already moderate since the increases of three tenths in January or two tenths in February. Looking a little further back, the jumps reached one point last September, triggering mortgages or six tenths in June.
“We have returned to the rule of a one-tenth rise in the Euribor each month. The most logical thing would be for this stabilization to continue over the next few months,” explains the director of iAhorro mortgages, Simone Colombelli.
The upward curve “is flattening out.” A “positive stabilization for people who already have a variable-rate mortgage and also for those who want to contract it soon,” says Colombelli.
Those who have to review the mortgage, have to take the data from a year ago (0.287%) and the current one (3.86%) as a reference for the calculations.
Based on the calculator of the Spanish Mortgage Association, a person with a 30-year variable mortgage of 100,000 euros, with a Euribor 0.99% differential, will go from paying a fee of 330.30 euros to 522.25 euros. An increase of 190 euros per month, 58% higher, and 2,280 euros in the year.
With an average loan of 150,000 euros and the same conditions, you will pay 290 euros more per month and an extra 3,500 euros per year. The fee will jump from 501.78 euros to 791.50.
Under similar conditions, a loan of 300,000 euros will go from a fee of 1,004 euros to 1,583, increasing the monthly bill by 580 euros and the annual bill by almost 7,000 euros.
The revisions were even worse between January and March, since differences of 3.8 points were registered between one year and another, compared to the current 3.6.
The psychological rate of the Euribor at 4% could be reached in the summer, depending on whether the European Central Bank (ECB) announces new increases in interest rates. In its daily rate it is very close, after registering 3.982% this Monday. If the entity chaired by Christine Lagarde raises rates 25 points, to 4%, it is possible that the Euribor will follow suit. “It would also reach 4% in a matter of days, if it does not do so before,” says the expert. The ECB itself has warned that rates will continue to rise.
“Most likely, the Euribor will stagnate around that 4%, that it will not rise much more,” Colombelli ventures.
The reference rate for mortgages began to escalate without brake last year, when the first increases in rates began to be sensed due to runaway inflation in the euro zone. From -0.50% in December 2021, there have been continuous increases until today.
