The Euribor continues going up and, with one day to go until the end of the month, it points out that it will close november around the 2.83%. The rate of growth has moderatesince the data is only a 0.2% higher to October. The bad news for the variable rate mortgageshowever, is that the interanual variation is still huge, about 3.32 points percentages, with which the dues that it is time to review with the index of this month will suffer a steep rise.
For a mortgage of 150,000 euros at 24 years with a kind of Euribor plus 1%will mean going from a fee of 554 euros to paying 797, that is, 243 euros more per month and 2,916 euros more per year. for a credit of 300,000 euros With the same characteristics, the increase will be from 1,107 to 1,594 euros: 487 euros more per month and 5,844 euros more per year.
the brutal and without precedents Euribor rise leads all year getting more expensive Variable-rate mortgage installments (not fixed-rate ones, which are not affected). But worst for the mortgaged is coming. As of this month of November, the revisions will be carried out with a type that will touch and exceed 3% (plus the differential signed when the credit was contracted), very strong increases that will continue for about a year. The largest increases will be concentrated in the first semester of the next exercise.
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 began to take place in October and are going to shoot up from November is that it is normally used as reference the euribor of Two months before.
In other words, variable rate mortgages of october were reviewed with the august index (which was 1,747 points percentage above that of August 2021), those of November are doing so with that of September (2,725 points higher), those of December will do so with that of October (3,102 points) and those of January will do so with that of November (the 3.32 points mentioned). To put it in perspective, the quota revisions Come in March and July were made with interannual differences in the Euribor between 0.028 and 0.768 pointsin August it was 1,336 points and in September it was 1,483 points.
unprecedented climbs
The current year-on-year differences are unusually high because the Euribor was at end of last year in zone of record lows (-0.502% in December), while this November is around 2.83%, which implies the faster upload since the index’s creation in 1999. Experts anticipate that higher increments of mortgage installments occur in the next months.
will start to decrease gently around the summer that is coming and more pronounced in October and November, when said interannual differences of the Euribor are reduced when comparing the index with its current levels. This is what explains that the Government has urged the banking to close a agreement to help the most vulnerable mortgageeswhich will enter into force on January 1.
ECB pending
The Euribor measures the medium interest to which the banks lend money with each other. Its sharp rise responds to the fact that entities are trying to anticipate the movements of the rates that they estimate will be carried out by the European Central Bank (ECB). The monetary authority, thus, has raised them in two percentage points so far this year and the market anticipates another rise of 0.5 or 0.75 points in your meeting of december.
The expectation that it is close to reach the maximum rate is what explains the recent slowdown of the Euribor. However, it is to be expected that the benchmark mortgage index has not yet reached its peak, although it may be getting closer. “Everything suggests that the Euribor won’t put on the brake in the short and medium term”, pointed out the director of iAhorro Mortgages, Simone Colombelli, in a note. Helpmycash, for its part, sees “very likely” that the index closes the year around 3% or above.