How will the record rise in the Euribor affect you?

Its January level implies for a mortgage of 150,000 euros to 24 years with a rate of Euribor plus 1% that will have to be revised with the new data (normally those that must be updated in march) go from a monthly fee of 554 euros to paying 838, that is, 284 euros more per month and 3,408 euros more per year. For a credit of 300,000 euros With the same characteristics, the increase will be from 1,108 to 1,676 euros: 568 euro more per month and €6,816 more per year.

The Euribor, which theoretically measures the average rate charged by banks with each other for borrowing money, he lived in 2022 a unusual rise from creation in 1999. The index is about anticipate the movements of the European Central Bank (ECB), which, to combat the inflationhas taken the reference rates at 2.5%after raising them four times since July after 11 years without increasing them. The monetary authority indicated in mid-December, in a harsher message than expected by the market, that it expects to continue making the price of money more expensive, with which the Euribor still has a certain upward tour. In fact, this Thursday will most likely approve new risewhich the market expects to be another 0.5 points.

skyrocketing odds

Consequently, the mortgage payments They were on the rise throughout 2022, although between the past November and mid 2023 is when they will increase the most. Although there are loans for the purchase of housing at a variable rate that They are reviewed every six months, most do once a year. The quotas go up if the Euribor is higher than a year earlier in the month that serves as a reference to review the credit. The reason that the largest increases started to occur in November is that it is normally used as reference the Euribor of two months before Of the review.

As of last November, well, revisions are being made with a type that borders on and exceeds 3% (plus the differential signed when the credit was contracted), very strong increases that will last for more or less a year. If the forecasts of the experts are fulfilled, the increases in the quotas will begin to be smoothly less pronounced around the summer and more clearly in October and November, when said interannual differences of the Euribor are reduced when comparing the index with higher levels, those of the second half of 2022.

The Euribor, thus, will continue giving bad news to those mortgaged at a variable rate this year. Analysts anticipate that he will rise to mark a maximum between 3.5% and 4%. However, whether said estimate is met will depend on whether the stage on which it is based. That is to say, that the inflation slackens and central banks can accordingly stop rate rises official interest rates, an assumption subject to high uncertainty.

Government plan

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These strong increases explain the agreed plan recently by the Government and the banks. For up to a million families low income (up to 25,200 euros per year) and averages (up to 29,400 euros per year), have agreed on a series of measures that the sector has committed to apply, such as the freezing of quotas, term extensions and grace periods in the payment of capital with lower rates.

The rise in official and market rates is not only taking its toll on those already mortgaged, but also on those who are signing new credits to buy a house. The average guy of new mortgages stood at the 2.7% in November, latest data available. It’s about interest most expensive since November 2014 and represents a strong rise compared to 1.44% twelve months earlier. However, Spanish banks have the third lowest rate in the euro zoneonly ahead of Malta (2.32%) and France (1.91%).