The Euribor stands at 4.001% with a single day ahead to close June, according to calculations by the comparator and advisor iAhorro. If it closes above 4%, it will be the first time since November 2008, almost 15 years ago.
The escalation of the variable mortgage reference will result in an increase in installments of up to 6,000 euros in the most recent loans.
“It is very possible that we are about to reach the ceiling or the maximum level of the Euribor and, in a few months, we could begin to see decreases in the values ??of this indicator,” says Simone Colombelli, the portal’s director of mortgages. For now the path of increases does not stop. The European Central Bank (ECB) is expected to raise interest rates another 25 points at its meeting in late July, taking rates to 4.25%. In any case, inflation in the euro zone is slowly coming to a head, so rates above 5% are not expected, as in the US.
With the current rates, to calculate the increase in a loan that was closed last year, it is necessary to calculate the installments that were paid at the beginning of the life of the loan, with a Euribor of 0.852% in June 2022, and those that will be paid with 4,001%.
In the case of a variable mortgage of 150,000 euros at 30 years with a Euribor 0.99%, it goes from a fee of 542.65 euros to paying 804.41 euros, based on calculations with the simulator of the Spanish Mortgage Association ( AHE). Thus, the mortgaged person faces an increase of 262 euros per month or 3,144 euros per year.
For a mortgage of 300,000 euros over 30 years, the figures double. With the same conditions, the fee jumps from 1,085.31 euros to 1,608.82. The increase is 523.51 euros per month or just under 6,300 euros per year.
Both cases refer to recently constituted mortgages. In mortgages where years of payment have already been covered, the jumps are not so high. CaixaBank, the main entity in Spain, recently pointed out that its clients have an average mortgage of 67,000 euros and the installments grow by 90 euros per month.
With the slower rate of monetary policy, Colombelli points out that the Euribor gaps have been narrowing. If in the summer of last year there were jumps from one point from one month to another, now progress has been made at rates of one tenth since February, with greater stability. “By the end of the year we will see the Euribor cap and the cap on the increase in prices, which will not be very far from what we have now in the market,” analyzes the expert.
The increase in the cost of financing will reduce operations in the market, they anticipate from iAhorro, since prices are not moderating. Given the panorama, it is recommended to opt for a mixed mortgage, which offers rates of 2.5% TIN in the fixed tranche, one point below the 100% fixed, and wait for the Euribor to drop when the variable tranche arrives, at 5, 10 or 15 years depending on the characteristics of the credit.
