The Euribor, the index to which most variable rate mortgages in Spain refer, exceeded 4% a few months ago and now will close almost at 3% (3.180%). It is the biggest monthly decline in 15 yearsvery good news for those who only experienced increases in those years.
In fact, this will mean a reduction of up to 900 euros per year in the repayment of variable loans. The index could be reduced by half a point at the end of this year, to around 3.2%. To find a similar reduction in just one month at this expected figure, we would have to go back to the year 2009.
For those with variable rate mortgages, September brings a much less steep slope. We measure this against an average mortgage of about 150,000 euros. If your annual review is due in September, your monthly payment will decrease by a few 75 or 80 euros. Although there is bad news for those who have already done so Mortgage loan reviewed this summerbecause to benefit from this downward trend, we will have to wait almost a year.
And for those looking to get a new mortgage, new horizons are opening up because the banks have launched the offensive. And there is a radical change of scenario in which the Association of Financial Users (Asufín) recommends two products: either the mixed one or a new fixed one. To get a variable mortgage, it is better to wait because the Euribor is still high.
Antonio Luis Gallardo, head of Asufin Stadiums, told Sexta Noticias that “The mixed ones are very competitive, but if we find good fixesaround 2.5% interest points or even less, are mortgages for the future.”
This index, between 2022 and 2023has increased by almost 3 points, while last year it will be reduced to less than half. “This does not compensate for everything that has been raised since 2022,” said the director of Asufin Studies. However, the good news that persists here depends on the European Central Bank continue to lower interest rates.
