The Euribor continues to climb month by month, although it reduces its growth rate. The indicator most used in Spain to calculate the installments of variable mortgages has closed in April at 3.757% in its average rate. Thus, the loans that have to be reviewed with this data will increase their share substantially, since a year ago the index stood at 0.013%.
Since the uncertainty over the war in Ukraine changed its trend a year ago, the mortgage index has registered more attenuated increases in 2023, of between one tenth and one and a half tenths more per month. However, the forecast is that it will continue accumulating promotions until it reaches 4%. A level that could reach in the month of June, according to the forecast of the Association of Financial Users (Asufin).
The main unknown is when the calm will come. Simone Colombelli, director of Mortgages at iAhorro and mortgage adviser, believes that “we could be close” to the stabilization period for the index, but “most likely” it will first climb to 4%. A level at which it would remain in the last quarter of the year, at which time “we could see the index drop”, they add from Asufin.
In any case, the fact that the Euribor continues to rise, even if it does so at a slower rate than a few months ago, continues to be bad news for those mortgaged at a variable interest rate. For example, whoever has to review a loan of 150,000 euros at 30 years with an interest rate of Euribor -3.757% in April- plus a differential of 0.99% will see how their payment goes from 482.67 euros per month to the 771.65 euros. This means an increase of 288.99 euros per month and 3,467.84 euros per year.
In the event that the initial amount of the loan is 300,000 euros, the mortgaged person will have to face an increase in the installment of 577.97 euros each month, going on to pay 1,543.30 euros per month, an amount substantially higher than what he had to pay. face before the revision, of 965.33 euros.
The higher outlay can put many households in financial trouble. “We have to continue to monitor the impact on mortgaged families, who already exceed the annual quota increase by 2,000 euros, for every 100,000 euros of mortgage, and if the measures provided for in the Code of Good Banking Practices are sufficient to alleviate economic tensions â€, they point out from Asufin.
