SPAIN: The Euribor at historic lows, reduce mortgages … – EntornoInteligente

ABC of Spain 2 / pumping liquidity from the European Central Bank begins to have its impact on the pocket. The twelve-month Euribor, the most used for calculating mortgages, March indicator closed at a record low 0.2% to turnover, which will lower the mortgage agreed in one year to be reviewed in April at about 200 euros a year ago.

With two days to the end of the month, and after setting a record low on Friday diary below 0.2% (0.199%), this indicator makes a provisional monthly average of 0.214%, the lowest in its just under fifteen years of history.

And as a year ago, in March 2014 the Euribor stood at 0.577%, three tenths above its current rate, an average mortgage of about 100,000 euros with a repayment term of 25 years would pay 358.03 to 341.76 euros per month, representing a discount of 16.27 euros per month, nearly 200 a year.

In February Euribor fell to 0.256% and until then the lowest rate in its history and for the second consecutive month below 0.3%, while in March now will stay on the edge of drill 0.2%.

Back in February rebate for mortgages underwritten previous year was around 200 euros, albeit with significant differences between regions, since the average amount of mortgages varies from one region to another.

So, mortgages increased level rises Euribor suffer greater extent than the smallest, but also benefit from greater discounts when low indicator.

Benefits autonomy Specifically, February were families with mortgages in Madrid and Balearic benefit most from the fall of Euribor, with discounts of around 200 per year, while the Canaries and Murcia noticed discount of just over 100 per year.

The Euribor, calculated by the European Banking Federation with the data of the main entities of the euro area, actually shows the price of money to a year in the European interbank market, but it is the principal reference variable rate mortgage.

The evolution of the indicator depends on the ups and downs of types approved by the European Central Bank (ECB), which at its meeting last September reduced interest rates to record low of 0.05% something that has not changed since.

You have to go back to July 2008 to find the record high of Euribor, which was 5.393%, and from that moment took a downward trajectory that stopped in 2010 and resumed in mid-2011

Information ABC of Spain 2