Euribor at its lowest level for over two years and anticipates a cut in mortgages of almost 1,500 euros per year

2024-10-25 00:00:00

Him euribor continues to bring joy to those with a variable mortgage. The index continues in free fall and marked the daily rate yesterday its lowest record in more than two years, at 2,614%a level practically never seen since the beginning of the monetary tightening applied by the European Central Bank (ECB).

As regards the average for the month, it temporarily remains at 2.727%, which represents a small drop compared to the month of September (which closed at 2.936%) but a more than important cut for those who review their mortgage annually given that, in Nell ‘October 2023 was at 4.160%.

With this average, and five days from the end of the month, those who have a mortgage of 150,000 euros with a duration of 25 years with an Euribor rate plus a 1% differential will go from paying 1,015.92 euros to paying 894.32 euros, i.e. a saving of 121.6 euros per month and 1,459 euros annually. If the review is done every six months, the monthly saving will be 81.8 euros.

The Euribor thus continues the downward path that began last April and which, according to experts, is very likely to continue in the coming months. Euribor (abbreviation for Euro Interbank Offered Rate) is the interest rate at which banks lend money to each other and, consequently, is always very close to the interest rates set by the ECB. At its latest meeting, held a week ago, the Eurobank decided to lower interest rates again by a quarter of a point, leaving the price of money at 3.25%. And analysts are almost certain that, between now and the end of the year, there will be at least one new cut that will push the Euribor even further downwards.

What since then? iAhorro does not believe that mortgage supply will be particularly affected by these rate cuts, as most banks, they say, have already adjusted their offerings between now and the end of the year.. “Banks are already putting down change in this last quarter of the year and offering very aggressive interest rates on their mortgages, which we haven’t seen since 2022. On iAhorro, our users are already signing fixed mortgages with an interest rate that it is very close to 2% TIN and also some mixed mortgages with a fixed rate for the initial period lower than 1% TIN”, explained the director of the mortgage comparator, Simone Colombelli, last week.