Never before has such a bulging rise been seen in just one year. The euribor It was in December 2021 at -0.5% and now in the same month of 2022 it has closed slightly above 3%. This means an increase in the interest rate of mortgages referenced to this index of 3.5 percentage points. How does that translate to my quota?
In Spain, more than seven out of ten loans are linked to Euribor, usually 12-month. This means that each monthly update of this indicator has an important importance for consumers in our country. And this December, for those who now have to review their quota, the increase in what they will pay will be very considerable.
Taking into account an average mortgage of 150,000 euros, at 25 years and with an interest rate of Euribor plus a 1% differential, the change from one year to the next will put a lot of pressure on family finances. In December 2021, the monthly installment of that loan amounted to 531.87 euros; this is 6,382.44 euros per year. On the other hand, the panorama is very different with the current data.
Using that same example of an average mortgage, the installment of that loan now becomes 792,58 euros; per year are 9,510.96 euros. In this sense, the monthly fee increases in interannual terms by 260.71 euros, while the annual amount of the increase in the cost of the mortgage amounts to 3,128.52 euros.
Thus, in percentage terms, the increase in the share is 49% more than a year ago. This figure has been increasing over the months and it is expected that it will still have a little more to go in the first months of the year because the euribor it will rise even more, according to analysts, in the short term and the comparison with respect to the first three months of 2021 will still be against negative values.
The greater the amount of the loan, the greater the increase in euros that is supported. Now the example is of a 25-year mortgage of 250,000 euros with an interest rate of Euribor plus a 1% differential. In December 2021, the share of this credit was 886.46 euros, which is equivalent to 10,637.52 euros per year. With the Euribor of December 2022, the resulting fee to pay increases to 1.320,97 euros, which is 15,851.64 euros. These last amounts represent 434.51 euros more per month, which is equivalent to 5,214.12 euros more per year.
default risk
Under this scenario, the risk of increasing defaults on mortgage loans is increasing. Therefore, the Government agreed with the bank a series of measures to prevent consumers from being forced into delinquency. Among these measures there are facilities to change from a variable rate to a fixed rate, extension of the repayment term, lack of principal with a temporary reduction in interest…
For the moment, the financial sector remains calm since there have been no problems in mortgage payments, but it does closely monitor the evolution of the market due to the extra pressure that the rise in the Euribor adds to the financial balance of households. , which is added to the energy and inflation crisis.