Customers with a variable mortgage who are reviewed will see their installments increase by around 122 euros per month, which means almost 1,500 euros per year. That is what happens to a mortgage of 150,000 euros at 25 years (the most common in Spain according to the INE) with a spread over Euribor of one point.
The rise is the result of the 12-month monthly Euribor closing August at 1,249. It is the highest level since 2012 and means a rise of more than 1.7 points in just one year. In August 2021, the most common index to calculate mortgages was negative, at -0.498.
In August, the indicator that is constructed from the interest rate that banks lend to each other has shown a very marked rise. It is 23% higher than the level at which it closed in July, 0.992%.
The increase in price of variable mortgages is immediate for those that are reviewed these weeks. This review is usually once a year. Therefore, the increase in fees will be progressive for customers once they are due for review.
With a Euribor at 1.25%, whoever has contracted a 30-year variable mortgage of 150,000 euros and with a differential of 0.99% on Euribor will see the installment rise by 120.03 euros per month, the equivalent of 1,440.36 euros per year. In a loan of 300,000 euros and the same conditions, the installment will climb 240.06 euros, or 2,880.72 euros per year, according to iAhorro calculations.
In the case of new mortgages, the rise is also immediate because the calculation of the installment will be done with a much higher Euribor, for example, than it was in March just before the conflict in Ukraine intensified. At that time, the Euribor was still negative: -0.2%.
As for mortgages, there is also an increase in prices since banks have raised their rates due to the new scenario.
The indicator has shot up again due to the expectation that the European Central Bank (ECB) will continue to raise interest rates to control inflation (in August it reached 9.1% in the eurozone, a record), and that it will even will do more sharply.
