The feared rise in the Euribor is exceeding all analysts’ expectations. The index to which nearly 80% of mortgages in Spain are referenced experienced a “historic” rise in June that led it to record a monthly average of 0.852%. Almost six tenths more compared to the rise harvested in May, of 0.287% and just over 1.3 points compared to the 2022 average. An increase that can make the mortgage payment for variable loans more expensive by up to 2,000 euros per year.
It is the calculation made by the iAhorro digital comparator. According to their estimates, for a 30-year variable mortgage of 150,000 euros and with a spread of 0.99% + Euribor If it is reviewed this month, the borrower will see how their mortgage payment increases by 90.28 euros (from 449.18 euros to 539.46 euros), which would mean an increase of 1,083.36 euros per year.
If the amount of the mortgage loan amounted to 300,000 euros, under the same conditions, the increase in the monthly installment would be 180.55 euros (from 898.36 euros to 1,078.91) and the annual increase would be 2,166.60 euros. , they explain from the comparator.
But the rise in the index does not only affect those who have contracted their mortgage at a variable rate. The fixed rate has experienced “increases of up to 70 basis points in some entities”, which is taking the average reference of these loans to levels close to 2%. That is why the director of iAhorro Mortgages, Simone Colombelli, bets on the mixed mortgage, which will have competitive offers “in a matter of time”.
All this after the euribor has lived a record June. Never in its history had there been such a high year-on-year increase, since in June 2021 the index stood at -0.484%, so the increase experienced in June is up to 276.03%. In addition, the average values harvested this month had not been seen since August 2012, when the average monthly rise stood at 1.061%.
How far will the index go? At iAhorro they prefer to be cautious because “everything we’ve done so far has fallen on deaf ears.” The truth is that analysts expected the Euribor to touch 1% at the end of the year, an estimate that has already become obsolete in June. In recent weeks, voices have multiplied that assure that the Euribor could close the year at 2%, but from iAhorro they prefer to wait until the return of summer to make a complete estimate.
The number of home mortgages rose by 4.5% in April, to the 33,423 operations, according to figures published last Friday by the INE. It represents a fall of 22.3% compared to the previous month, but also the highest figure in a month of April since 2010, just after the bursting of the housing bubble. Of this figure, 75% of the loans signed were at a fixed rate.
George is Digismak’s reported cum editor with 13 years of experience in Journalism